The Benefits of Private Dispute Resolution

Summary: Certain matters are better handled privately. With reduced costs and quicker outcomes, this method has become increasingly popular over the years.

When it comes to disputes, one of the most effective ways to resolve them comes through a private process. With minimal litigation costs, the parties will involve themselves in an alternative dispute resolution and handle the matter through a neutral arbitrator. There are three basic methods: private mediation, arbitration, and private settlement.


When a mediator is involved, he or she acts as a neutral party that cannot take sides or decides who is right or wrong. The mediator’s job is to lead the parties to a mutually beneficial resolution. Each party also has the right to obtain legal counsel, if they desire. There are numerous advantages to mediation that include: reduced costs, personal conflict resolution, and controlling each party’s fate. If both parties agree, the mediation can be binding.


During private arbitration, either party can pick a neutral arbitrator to handle the entire dispute, or, they can choose a singly arbitrator like Lyle Charles of Lyle Charles Consulting to select a neutral party. The advantages are relaxed rules of evidence, quicker hearings, and faster end results. Most importantly, it’s a cost-effective way to settle.


Through settlement, the aforementioned tactics are combined. This is useful when both parties are in the midst of litigation and realize that a settlement may be in their best interests. The settlement facilitator will often split both parties into separate rooms and offer a number until there is a mutual agreement. The advantage here is obviously reduced litigation costs and finality to the litigation if both parties agree to the final amount.