Monthly Archives: January 2015

Conflicts resolution within a joint venture

A joint venture is one of the simple business models that allow all involved parties to share their capital and responsibility in doing business. However, this legal form of business also consists of problems when the joint venture’s members have conflicts or disputes relating to their legal responsibility and benefits. In this case, there are various ways to address the problems, including arbitration process.
Upon the cases conducted by La Crosse Wisconsin law offices, the arbitration process often experiences primary steps as following.
Firstly, parties should negotiate themselves in order to address the conflicts. This step is helpful to keep all of information confidentially and save cost for them.
Secondly, if all of the parties cannot solve the problems themselves, they can select an agreed arbitrator in order to help them to address their conflicts. Such a step is still meaningful in keeping the information confidentially although it requires a cost to pay for the arbitrator.
Thirdly, if parties cannot select the agreed arbitrator, each of them can choose its own arbitrator. Then all of the arbitrators will work together in order select other immediate arbitrators and negotiate with each other to find the mutual solutions for the problems. Consequently, the board of arbitrators will make the final decisions to handle the issues. Naturally, this step always takes time and costs because different mediators need time to study the problem and work together to have a mutual-benefit agreement. This step is also less confidential than others.
The fact figured out by La Crosse Wisconsin law offices indicated that all of the parties should study the joint venture agreement and operation agreement before signing in order to avoid conflicts relating to legal issues thoroughly. If the conflicts arise, the best option is to perform internal negotiation, especially when the money-value of conflicts is smaller than the costs paying for arbitrators.