In the fast-paced world of business, conflicts are sometimes unavoidable. Whether it’s a breach of contract, partnership disagreement, or commercial lease issue, finding the right way to resolve a dispute is essential for maintaining your company’s reputation and financial stability. One increasingly effective strategy is resolving business disputes through mediation or arbitration—two forms of alternative dispute resolution (ADR) that offer a less adversarial and more cost-effective approach than going to court.

At Sorensen Truong LLP, we help British Columbia businesses choose the right method for dispute resolution and guide them through every step of the process.

What Is Alternative Dispute Resolution (ADR)?

Alternative Dispute Resolution refers to processes that help parties resolve disputes without traditional litigation. The two most common ADR methods are:

• Mediation: A voluntary process where a neutral third party (the mediator) facilitates negotiations between the disputing parties to help them reach a mutually acceptable solution.

• Arbitration: A more formal process in which an impartial arbitrator hears arguments and evidence from both sides and then makes a binding or non-binding decision.

Why Choose Mediation or Arbitration?

1. Cost-Effective and Time-Saving

Litigation can be expensive and time-consuming. By resolving business disputes through mediation or arbitration, companies often save thousands in legal fees and avoid months—or even years—of court delays.

2. Confidentiality

Unlike court proceedings, which are part of the public record, mediation and arbitration are private. This allows businesses to protect sensitive information and avoid negative publicity.

3. Control Over the Process

In mediation, parties maintain control over the outcome and are not bound to accept a decision unless they agree to it. Even in arbitration, parties have more control over procedural aspects, such as choosing the arbitrator.

4. Preserving Business Relationships

Because mediation is collaborative rather than adversarial, it often helps preserve professional relationships that could otherwise be permanently damaged by litigation.

When Should You Consider Mediation?

Mediation is particularly useful when:

• The parties are willing to negotiate in good faith.

• There is a desire to preserve the business relationship.

• The dispute is relatively straightforward, such as disagreements over performance timelines, deliverables, or contract terms.

At Sorensen Truong LLP, we often recommend mediation as a first step for resolving commercial disputes in a timely and cooperative manner.

When Is Arbitration the Better Choice?

Arbitration may be more appropriate when:

• Parties want a legally binding resolution without the delays of court.

• The issue requires a decision from someone with subject-matter expertise.

• One or both parties are not open to compromise.

In many commercial agreements, arbitration clauses are included to ensure disputes can be resolved privately and efficiently. Our legal team can help you understand and draft enforceable arbitration clauses that reflect your business interests.

Legal Support from Sorensen Truong LLP

At Sorensen Truong LLP, we have extensive experience helping BC businesses resolve disputes through mediation or arbitration. Our lawyers are skilled negotiators who understand how to achieve the best possible outcomes outside of court while protecting your legal and commercial interests.

Whether you're facing a contract dispute, partnership disagreement, or commercial litigation risk, we can help you explore all available options and move forward with confidence.

Final Thoughts

In today’s competitive business environment, avoiding lengthy and expensive legal battles is more important than ever. By resolving business disputes through mediation or arbitration, you can protect your bottom line and maintain productive business relationships.

Need legal advice on a business dispute? Contact Sorensen Truong LLP today to schedule a consultation with an experienced business lawyer in British Columbia.