William Hopson of Goldman & Wise in Atlanta offers alternative dispute resolution (ADR) as an effective alternative to going to court. ADR uses problem-solving, consensus-building and effective communication techniques to resolve issues quickly and effectively without the high financial and emotional price of lawsuits.

Because ADR is aimed to create a win/win situation for both disputing parties, ADR 

binding and may create a win/loose situation, ADR allows for a compromise that satisfies both sides. ADR also gives the creditor an opportunity to recover some or all of their costs, while sparing the frustration and expense of collection and litigation.

The anger alternative
Because ADR uses problem-solving, consensus-building and effective communication techniques, much of the anger and hostility often experienced 

Even the most well-managed businesses experience billing 

disputes, contract disagreements and account discrepancies. When these situations go unresolved, they can create cash flow problems, lawsuits, liens or, worse yet, bankruptcy.

According to Hopson, Chief Negotiator of Goldman & Wise, many vendor/supplier disputes lead to lawsuits that exhaust not only the time and energy of a business, but their resources as well. "In 1993 alone, more than 22 million civil cases were filed within out country's judicial system," says Hopson. "These businesses who take their disputes to court often wind up spending tens of thousands of dollars in court and legal fees, plus endure enormous amounts of stress and anxiety in getting a case to court."

Also known as arbitration, ADR is the intervention from a third party who opens the lines of communication so that an equally satisfying resolution can be made for both parties.

An ADR explosion
The popularity of ADR has exploded in recent years, so much that state and federal laws are "encouraging the use of business arbitration clauses in their contracts to save them from going to court," say Hopson. "Just the lawyer fees alone can run anywhere from $10,000 to $100,000 and higher. What makes ADR so attractive is that it's handled on a contingency basis. That means there's no charge for the service in the unlikely event a settlement cannot be reached."

While a judge's decision is 

insults or misunderstandings, not to mention the money and legal issues," says Hopson. "It's a proficient arbitrator who can emotionally calm both parties down to go beyond the hurt feelings and egos and look at the real issues at hand."

Without a competent and problem-solving arbitrator, disputing parties can most assuredly and often permanently damage the vendor/supplier relationship. "Because we're like marriage counselors or bridge builders working to restore relationships, we aim to create for a win/win situation, and that produces a healthier bottom line for everyone," he said.

The last defense
Hopson believes those in business disputes should only resort to legal counsel when it is genuinely warranted and then strictly on a results-only basis. "Without arbitration, a court ruling could instantly impose a bank levy on business accounts or place liens on property and/or other assets," says Hopson. "This could cause a downward spiral of the business to accelerate whereas the restoration of the business back to viability becomes less and less feasible. In many cases, third-party debt arbitration is the only way a business can survive an otherwise deadly financial grip."

Whether your situation is a billing dispute, contract disagreement or account discrepancy, Alternative Dispute Resolution can convert a potentially ugly situation into a more satisfying one!