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How To Handle Inter-Company Legal Disputes

  • Communication is the first step in resolving inter-company legal disputes.
  • Don’t skimp on the service of the process to ensure legal proceedings run smoothly.
  • Consider all options for resolution, such as mediation, legal action, arbitration, and extension agreements.
  • Remember to think about the impact of the dispute on employees and try to minimize disruption.
  • Negotiate in good faith and consult with an experienced lawyer to determine your best course of action. 

Inter-company legal disputes can be jarring and costly for any business or company. They can take years to resolve and ultimately put a strain on partnerships and business relationships. But handling these legal disputes effectively can save your business time and money. Here are some actionable tips for dealing with this type of situation.

Start with Communication

Start with communication. Before resorting to a legal battle, attempt to resolve the disputes via communication. This can help to fix minor issues before they escalate.

Identify the issue and schedule a meeting with all parties involved. In this meeting, listen to everyone’s point of view and attempt to reach an agreement. Remember, it is crucial to keep an open mind and to negotiate in good faith. This could save valuable time and resources that would be used to resolve the dispute.

If possible, try to settle the dispute out of court. If a mutually acceptable agreement can be reached, there is no need for a legal battle, and all parties can move forward with their business goals.

serious business meeting among people involved in the legal dispute

Hire Process Servers

If communication does not resolve the issue, or if a lawsuit becomes necessary, you will need to look for options for proper service of process. Process servers are professionals who specialize in delivering legal documents such as summonses and subpoenas.

Ensure that all documents that need to be served are correctly filled out and signed by an authorized representative of your company. Then, hire a process server to deliver the papers.

This will ensure that all parties have received the proper documentation and are aware of their responsibilities in the dispute. This is important to ensure that the legal process runs smoothly.

Consider All Types of Resolution

When dealing with a legal dispute, it is essential to consider all types of resolution. There are many avenues for resolving disputes, and some can be more applicable to your situation. Here’s a rundown of each:


Mediation is another way to handle inter-company legal disputes. Mediation involves a neutral third-party mediator to help work through conflicts and reach an agreement.

Mediation is a confidential process that can be completed without going to court. It is an excellent option if both companies are in good faith, as it can save both parties time and money.

Legal Action

If communication and mediation methods have been exhausted, then it may be necessary to resort to legal action. Always take note that legal action may be expensive and will ultimately consume much of your time.

You should consult with a lawyer to determine the best course of action to take. They can help with any legal paperwork, provide legal guidance on the matter, and give advice on the best way to proceed.


Arbitration is another option that businesses have when it comes to handling legal disputes. This method involves a neutral third party who reviews the case and makes a final judgment.

The decision of the arbitrator is final and binding, meaning that both parties are required to comply with it. It is important to note that arbitration may be less expensive than going to court, but it may not be as quick as mediation.

Extension Agreements

Extension agreements are another method of resolving disputes. This is where both parties agree to extend the deadline for resolving disputes.

It is, in effect, a pause in the legal process. Using extension agreements helps both companies to avoid expensive litigation costs, preserve business relationships, and work to resolve disputes amicably.

two businessmen smiling while shaking hands in agreement in a meeting

Think About Your Employees At All Times

When dealing with a legal dispute, it is essential to remember the implications it could have on your employees. If possible, try to keep the employees informed of any developments in the case and how they might impact them.

You should also ensure that your human resources team is available to answer their questions or provide counsel. Keeping your employees informed and involved will help to maintain morale and productivity during a problematic legal situation.

If possible, you should also try to minimize the impact of the dispute on other employees not directly involved in the case. This can help to minimize disruption and keep your business running smoothly.

Inter-company legal disputes can be time-consuming and costly for any company. But handling legal disputes effectively can save businesses time and money. Communication, mediation, legal action, arbitration, and extension agreements offer a range of options that can help resolve disputes. Approach disputes with an open mind, negotiate in good faith and consult with an experienced lawyer to determine your best course of action. Remember that it is always in your best interests to solve disputes amicably and preserve business relationships.

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