Call us now on +353 1 663 2000

Resolving Disputes: A Brief Guide for Business Owners

We all know that running a business is not easy and when you add in the many complex relationships to the mix, commercial disputes are an inevitable part of every company’s life; when they happen, you have a choice as to how to deal with the issue however, so you don’t lose time, that you deal with them quickly and effectively. If not handled well, commercial disputes can have a significant impact on your business, including harm to client and employee relationships, damage to reputation and loss of time, resources and money.

While the litigation process remains the most common way of resolving business related disputes it would be better to avoid litigation for many reasons but mostly because it is expensive and time-consuming. Alternative ways of resolving disputes or ADR, such as arbitration and mediation, in many cases offer a less disruptive and costly way to settle matters. However, where legal proceedings are unavoidable it is important to focus on achieving the best commercial outcome. Remember, the aim of litigation is to solve a problem and provide a solution.  

How can you reduce the likelihood of a dispute?

The most effective approach is to create and consistently use precise, written agreements and to have a clear understanding of your legal obligations. An example of this is in the context of employment law, where the contract of employment sets out clear and precise terms and responsibilities of both employer and employee. Clarity of terms and legal compliance are key factors in avoiding commercial disputes.

It is also important to manage the risk of a dispute occurring where possible. For example, if a customer has not paid, you should be proactive in trying to resolve the issue before it can escalate and put measures in place to reduce any harm to your business in case the matter does worsen.

How can commercial disputes be resolved?

In many situations, litigation is not the only option for resolving business disputes. Alternative Dispute Resolution (ADR), including mediation and arbitration, is often a better fit for the parties involved and the issue at hand. Indeed, it is not uncommon today to see businesses include terms in their contracts requiring disputes to be dealt with by ADR. The benefits of mediation, arbitration and other forms of ADR are, generally, cost, confidentiality and speed.

Mediation

Mediation occurs where both parties involved in the dispute agree to use a neutral third party to help solve the issues. The terms of the agreement are decided between the parties with the help of the mediator (or alternative dispute resolution body). Agreements reached in mediation are not necessarily legally binding but they can be made so if both parties agree.

The Mediation Act 2017 took effect on 1 January 2018 and encourages parties to attempt to settle disputes by mediation before going to court. The Act places mediation as an alternative to court proceedings on a statutory footing and should result in a reduction in costs in many disputes. 

Arbitration

In arbitration the decision of the arbitrator is legally binding and the process is governed by the Arbitration Act 2010. You can represent yourself in arbitration, but you may benefit from legal representation.

What is the right option for your dispute?

The correct route for any dispute depends on the circumstances of the case, and a pragmatic decision should be made. This chart may help you decide which is the most appropriate for your dispute:

 

Mediation

Arbitration

Litigation

Format

Mediator facilitates an agreement

Arbitrator makes a decision

Court makes a decision

Decision Maker

Appointed by the parties

Appointed by the parties

Appointed by the court

Confidentiality

Confidential

Confidential

Public

Time

Shorter process

Longer process (but usually quicker than litigation)

Lengthy process

Cost

Low cost

High cost (but often less than litigation)

High cost

Outcome

Non-binding (but can be made binding)

Binding

Binding

Party Control

High

Medium

Low

 

Our recent experience with commercial disputes

We frequently act in commercial disputes. Our solicitors understand the importance of remaining up to date with legal developments and keeping our clients informed while listening to their needs. We recognise that legal disputes can divert vital resources from businesses and so we aim to achieve a result that will minimise future legal risk.

Recent cases

  • We have managed the disciplinary hearings for sporting and professional bodies governed by the rules of arbitration.
  • We recently acted for a company director and shareholder of a manufacturing business in a dispute with the co-director and fellow shareholder of the company. At the centre of the dispute was a fundamental difference in opinion regarding the overall direction of the business and the amount of time and effort that each of the parties was contributing to the running of the company. Our client wanted to remove the co-director from the company and take the company in the direction he believed was best for its long-term success. We presented several options and put in place the strategy to achieve the most successful outcome for our client and within three months, our client was able to buy-out his fellow shareholder and replace him as a director which meant the survival of the company, securing the jobs of 20 staff and a renewed focus on growth.
  • We obtained summary judgment for €3.5m following a contested hearing in the High Court, which was confirmed by the Court of Appeal.
  • We have advised secured creditors and receivers on the appointment of receivers to companies and assets.
  • We advised homeowners in a High Court matter against their former solicitors and insurance broker for failing to act in a competent and timely fashion. The Plaintiffs were residing in the UK when their neighbour initiated High Court proceedings for nuisance, trespass and wrongful interference with his enjoyment of his property during renovation works on the Plaintiffs’ property. During mediation, the Plaintiffs were offered full and final settlement of their action – a multi-million euro figure – and were extremely happy with the outcome of this matter. 
  • Resolved a long-standing dispute with a landlord in relation to a client’s exit from a property in the absence of a lease.

Our team

Our dedicated Commercial Dispute Team comprises of James Sherwin, David O’Riordan, and Elaine McNally.

Visit their individual pages on our website and their LinkedIn profiles to find out more about their qualifications, experience, expertise and testimonials.

To discuss your commercial litigation matter with our specialist team, contact us today on +353 1 663 2000.

Contact Sherwin O’Riordan

Invalid Input
Invalid Input
Invalid Input
Invalid Input
Invalid Input
Please tick the box below
Invalid Input

Read our latest updates, briefings, articles & thought leadership from our award-winning Employment, Commercial Lawyers & Personal Injury team.

Testimonials

"We simply cannot fault the service we receive from SOR. They have specialist solicitors in each area where we need advice and we’ve had contact with 4 different partners during the last 14 months, and the experience has been the same each time. Really really good."

Justin Cahill, Chairman, CMC Platform Financials

Office location

74 Pembroke Road
Dublin 4
Ireland

Phone +353 1 663 2000
Fax +353 1 663 2001
Email

Tweets

Congratulations to @brownthomas on their award at the @RetailExIreland Awards last Saturday twitter.com/retailexirelan…

Read more

RT @IEDR_dot_ie: #SMEDigitalHealthIndex 2019 insight: 81% of consumers believe that buying Irish is important. However, in an age of digita…

Read more

Ireland is an attractive location to many domestic UK firms. When considering whether or not to invest in Ireland, there are a variety of practical issues that our specialist commercial solicitors & investment experts can help you with. View details here: bit.ly/34SWUDH

Read more

Yes, I accept cookies and get the best experience on this website.