Business Partnership Litigation vs Negotiated Settlement – Which is More Cost Effective?

You and your business partners will need to work together and make many decisions together to maintain effective business operations. Unfortunately, sometimes disagreements can arise. 

When a dispute occurs and you are unable to solve it on your own, you will need to consider business partnership litigation vs negotiated settlement. Both could be options for coming to a  resolution of your disagreement, but there are pros and cons to each method of dispute resolution.

One of the biggest concerns for most who are involved in a disagreement with a business partner is whether litigation or negotiation will be more cost effective.  The answer can sometimes vary depending upon your situation, but an Orange County business dispute lawyer at Brown & Charbonneau, LLP can help you to determine the best method of resolving the disagreement with your business partner.

Cost Effectiveness of Business Partnership Litigation vs. Negotiated Settlement

Business partners may resolve a dispute by going to court and litigating the issue, or may be able to resolve their disagreements by working together and negotiating a settlement.

Litigation tends to be the more expensive of these two options. With litigation, you will need to pay court costs and fees. Depending upon the nature of the disagreement and the complexity of the issues, you may also need to pay expert witnesses. If you hope to have the best chance of prevailing in court, you will need to pay for a legal team to put together a strong case for you.  All of this can add up to a significant amount of money.

With a negotiated settlement, on the other hand, you skip the fees associated with court costs, expert witnesses and trial preparation. You and your business partner come together with your lawyers to try to create an agreement without a judge having to step in. Not only can a negotiated settlement be more cost-effective, but it can also be more amicable and can allow you and your business partner to remain on better terms and move forward working together for the good of your organization.

The catch, however, is negotiated settlements are only going to be possible if all parties to the disagreement are willing to work together, compromise, and come to a fair settlement agreement. If your partner is unwilling to compromise or is not being forthcoming and you need a forensic accountant or other expert, a negotiated settlement may not work for you. Further, if you spend lots of time going back and forth in negotiations and then fail, you’ll have wasted the legal fees you paid during the negotiation process, as well as any fees for a mediator if you bring in third party help.

Southern California Business Attorneys Brown & Charbonneau, LLP can help you to determine if your situation is one where a negotiated settlement may make sense. Our business lawyers will provide you with representation and advice and will fight for the best outcome for you, either during litigation or during court proceedings. To learn more about how we can help resolve your partnership dispute, give us a call today.