How to Settle Disputes Among Business Owners in Texas

When you own a business with a partner, it’s normal to encounter problems that result in major disputes. Though many disputes can be overcome and resolved between the two of you with relative ease, some may require additional help. Working with an experienced attorney can make settling disputes among business owners in Texas easier, faster, and more beneficial for all parties involved. There are a few methods you may be able to use with an attorney’s help to successfully resolve and settle your disagreements.

Common Ways to Settle Disputes Among Business Owners

Every situation is unique, but there are several methods that business owners typically see success with when settling disputes and disagreements. Here are some of the most common.

Mediation

Think of mediation as a guided conversation between you and the other business owners involved in the dispute. The conversation is guided by a neutral third party. This can be a professional mediator, but many dispute resolution attorneys can also fill the role. During these conversations, you and the other partners involved will negotiate with one another. During negotiations, you’ll work to find ways to compromise or identify new solutions to your disagreements and problems. 

Though the mediator helps oversee the negotiations, the burden of reaching a resolution is on you and the other business owners.

Arbitration

Arbitration is a dispute resolution method that is overseen by a neutral third party known as the arbiter. During arbitration, each business owner explains their issues and concerns to the arbiter who makes a decision after hearing from all parties involved. That decision is legally binding and all parties must adhere to it. It’s similar to a court hearing, but takes less time and is typically less expensive. 

Going to Court

If arbitration or mediation isn’t enough, you may be able to take the other party or parties to court. During your hearing, you’ll present your side of the situation and, with the help of your dispute resolution attorney, present arguments as to why certain resolutions may be preferable. The judge will render a decision that’s legally binding for all parties. Keep in mind that suing other business owners may be more expensive and could make it difficult to work together in the future.

Buying Out the Other Owner(s)

If a business owner isn’t open to finding resolutions and wants to exit the business entirely, you may be able to buy their share of the business out. When this happens, they lose stake in the company and will not have any rights to oversee operations or be involved in business decisions. This can be a good choice if your differences are irreconcilable. However, you may need to work with a dispute resolution attorney to oversee the sale and to ensure that the contract and all terms of the contract are legally binding.

How to Decide on the Best Option

Each of these dispute resolution methods can be a good choice. However, you’ll need to choose the right method for your situation. It’s a good idea to speak with a dispute resolution attorney for advice. They’ll review your situation, your concerns, and your complaints to help you decide on the best resolution method if you’re unsure yourself.

However, if you’re confident that you and the other parties can reach an agreement with a little help, mediation or arbitration may be a good option. These methods often have the benefit of preserving some semblance of a working relationship between business owners, which can be helpful if you’re trying to minimize disruptions to your business.

Schedule a Free Consultation Today

If you and your business partners are experiencing difficulty reaching resolutions and compromising with each other to the benefit of the business, getting help is a good idea. Work with an experienced Texas dispute resolution attorney. Contact us today to schedule a free consultation.