AS all businesses know, at some point a dispute may arise with suppliers, customers, employees and competitors. There are a variety of ways to resolve such disputes.

Litigation is the traditional form of dispute resolution and normally involves using the courts.

There are now a number of protocols in place which encourage the early exchange of information and documents, in order to bring about a settlement of the dispute before the case reaches court.

It is of vital importance that all of the issues are identified at an early stage and the case is firmly established, preferably before any threat to bring proceedings is made.

The result of these protocols is that, frequently, legal costs are front loaded and significant costs will be incurred at the beginning of the case.

Court proceedings and the procedural rules which follow from the issue of such proceedings are fairly inflexible and it is vital that prior to embarking upon court proceedings that other options for the resolution of disputes are explored.

Alternative dispute resolution (commonly known as ADR) encompasses various methods of dispute resolution and most commonly involves mediation, where an independent third party attempts to mediate the dispute between the parties.

ADR can be much faster and cheaper than litigation, but if no settlement can be reached, it may only add to the cost and delay in resolving the dispute.

There are alternatives to ADR, such as attempting to reach a commercial settlement with your opponent.

Such a settlement may have little to do with the legal rights and wrongs of the respective parties’ positions, but may make good commercial sense.

It is still very important to take legal advice in order to draft an enforceable settlement agreement and make sure that all potential claims have been dealt with.

Dispute resolution can be a legal minefield and it is recommended that legal advice is taken at the earliest possible stage. Having your solicitor charge on a fixed fee basis can help you to keep control of the costs incurred.

* Ali Siddique is a solicitor specialising in property litigation, commercial leases and land disputes with BHP Law. He can be contacted on 01325-466794.