How to Resolve Your Internal Business Disputes

Encountering internal disputes occasionally occur in any type of business. It is best to seek legal advice through a civil litigation lawyer as soon as possible to resolve the dispute correctly from the start. Many law firms advise that this helps businesses achieve the best possible end result as soon as possible and reduces the change of running into additional problems. If a dispute becomes prolonged, a business can irreparably damage its reputation even if the outcome is positive. This is especially true for internal disputes that often occur between partners or shareholders and the company.

Types of Disputes

The most common examples of disputes include a breach of fiduciary duties, misconduct, the departure of a principal, improper disbursement of profits or a disagreement over the direction the company should be taking. Partners who have been working together successfully for a new of years may additionally experience disputes due to a change in personal circumstances, disagreements of future plans or a lack of the previous commitment.

Resolving a dispute may result in the acceptance between directors that they can no longer work together. In these cases, the two should attempt to separate on good terms without causing further detriment to the company. A less dramatic solution may just be to make a basic management change; however, the answer is never to wait and hope that the issues will resolve themselves.

Receive Legal Advice

It is recommended that the two parties begin the resolution process by receiving legal advice to better understand their rights and options. They should then agree on an independent mediator who is appointed to help them find a solution. A civil litigation lawyer can be ideal for fitting this role due to his or her neutrality in regards to the two parties’ situations. Each of the parties should receive a confidential session with the mediator before a round table meeting is conducted in order to allow them both to define their main concerns directly and efficiently. The two parties once again speak to the mediator in private who can decide on an appropriate resolution.

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Settling matters through the use of a mediator resolves around 85 percent of disputes within only a few weeks. Often, the dispute can be rectified on the day of the mediation. A mediator approach eliminates the need to take the dispute before a judge that can take up to 18 months before the matter is resolved. Furthermore, if the two parties are geographically apart, the entire process can be conducted over a video link or telephone call.

Find out more about Civil Litigation Lawyers in California. Need an author? Contact Stephen Craig

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