If you are having problems with your contractor in Minnesota concerning the terms of your agreement, you may be wondering if it is right for you to take the matter to court or settle it out of court. Both approaches have their advantages and disadvantages. Here’s a look at when you should handle a contract dispute out of court.
Out-of-court dispute resolutions
You can resolve contract disputes out of court, and the resolution you come up with is legally binding in Minnesota. These methods of solving disagreements are known as alternative dispute resolution techniques, and they include arbitration, mediation, and settlement negotiation.
When can they be a good choice for you?
Most people go for out-of-court settlements because they are faster than the court process. It can take you just a couple of days or weeks to come to a resolution with your contractor, and before long, you will have the structure that you want. Going to court could take you months or even years before you settle on an agreement.
Alternative dispute resolutions are more cost-effective than going to court. Working with a mediator or an arbitrator will cost you less than what you could have used in a courtroom, especially if your case lags on for a long time. The process helps ensure privacy and protects both your reputation and that of the contractor. Trials in Minnesota can become public when they get to court, and everyone could see it and even make uninformed decisions about you. This can pose a great risk if your business or work depends on your reputation.
When to proceed with the court process
If you want a higher compensation than what the alternative dispute resolution process is offering, then you should consider going to court. You should also consider a courtroom if you are not certain of the extent of the damage caused by a contractor. For instance, mediation could settle on compensation that may not completely cover the problems the contractor caused.
Whether you proceed with a trial or try to work things out without the need for court intervention will depend on the situation. You should consider the above factors when making your decision.