You can solve disputes either in court, with or without a lawyer, or outside of court. When choosing a method to resolve your disputes, you need to ask yourself:

Do You Need The Outcome To Be Legally Binding?
How Fast And How Private Do You Want The Process To Be?
How Important Is It For You To Maintain The Relationship?

Do You Need The Outcome To Be Legally Binding?

• Court decisions are legally binding, meaning they are enforceable under the law. This is one of the key reasons businesses decide to settle a dispute in court.
  
  
  • If your supplier or customer has been consistently evading you or not able to live up to promises made, you may go to court and seek judgment.
    
    
  • If the court rules in your favour, your supplier or customer can be jailed and/or fined if he fails to carry out the judgment of the court.
  
  
• Arbitration is also legally binding and is less formal than court proceedings. It is very similar to going to court, except that the proceedings are usually private. Singapore has signed the New York Convention, enabling arbitration decisions to be enforced in over 120 countries.
  
  
• Less formal methods of settling disputes such as negotiation, conciliation and facilitation, are all not legally binding. It depends on the integrity of all parties to carry out the settlement.

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How Fast And How Private Do You Want The Process To Be?

• Going to court will result in a clear decision within a fixed time frame. 
  
  
  • However, going to court can be costly and time-consuming.
    
    
  • What’s more, such cases may be publicised in the media, and be potentially embarrassing or damaging to your business’ reputation.
  
  
• Arbitration, mediation and other alternatives to going to court are private proceedings.
  
  
  • They do not draw media attention.
  • Most of the time, they can be settled quickly.
  • They are generally less costly.

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How Important Is It For You To Maintain The Relationship?

• Taking a valued supplier or customer to court can damage the relationship permanently.
  
  
  • The publicity generated could embarrass your supplier or customer.
    
    
  • The judgment, when released to the public, could result in your supplier or customer facing even more lawsuits.
  
  
• If you value the relationship, it would be wiser to settle matters out of court, so as not to harm a fruitful working relationship.

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