Florida Court Backlog Leads To Spike In Alternative Dispute Resolution (ADR); Could Be A Good Option For Shareholder Disputes
According to a report from Law.com, there is a serious backlog in the courts in Florida. Driven by the fallout from COVID-19 related delays and a wide range of other factors, many legal observers expect it to take several years to clear the backlog. One consequence of the court backlog is that more parties are turning to an alternative dispute resolution (ADR). ADR may be a good option for a number of different business law matters, including shareholder disputes. Within this article, our Miami shareholder dispute lawyer explains why ADR may be a good option for resolving a shareholder dispute.
What is Alternative Dispute Resolution (ADR)?
Alternative Dispute Resolution (ADR) is a term used to describe various methods and techniques for resolving conflicts and disputes outside the traditional court system. ADR methods provide parties with an alternative way to resolve their disagreements without the need for a formal trial, and are often seen as more cost-effective, efficient, and flexible than litigation. Some common types of ADR methods include:
- Mediation: With mediation, a neutral third-party mediator helps the disputing parties to communicate and negotiate in order to reach a mutually acceptable resolution. The mediator does not impose a decision, but rather facilitates the conversation and helps the parties explore potential solutions.
- Arbitration: Arbitration is a more formal process in which the disputing parties present their case to an impartial arbitrator or a panel of arbitrators. The arbitrator(s) then make a decision, which can be either binding (meaning the parties must adhere to the decision) or non-binding (meaning the parties can choose to accept or reject the decision).
Why ADR May Be Good Option for Resolving a Shareholder Dispute
Alternative Dispute Resolution (ADR) may be an effective and practical approach for resolving shareholder disputes. In many cases, ADR provides a more streamlined, less adversarial, and cost-effective solution compared to traditional litigation. Here are some specific reasons why ADR may be the best way to address a shareholder dispute in Florida:
- Cost-Effectiveness: ADR methods tend to be more cost-effective than litigation, which can involve substantial legal fees, court costs, and expert witness fees. By opting for ADR, the parties can save resources and reduce financial strain.
- Time Efficiency: Litigation can be a lengthy process, sometimes taking years to reach a resolution. ADR processes, such as mediation or arbitration, can be completed in a relatively shorter timeframe.
- Confidentiality: ADR processes are typically private and confidential, which can be advantageous in shareholder disputes where sensitive business information or other confidential information may be a big part of the dispute.
Contact Our Southeast Florida Shareholder Dispute Attorney for Help
At Pike & Lustig, LLP, we are focused on providing solutions-oriented legal guidance and support to our clients. If you have any specific questions or concerns about alternative dispute resolution (ADR) for a shareholder dispute, we are here to help. Call us now for a fully confidential, no strings attached consultation. Our firm handles shareholder dispute cases throughout South Florida.