I Have a Dispute With a Client: What Do I Do?

Disputes with clients can happen to any business, big or small. If you find yourself in a dispute with a client, it is important to know how to file a dispute correctly. This step-by-step guide will walk you through the process of filing a dispute against a client, from gathering evidence to choosing a dispute resolution method.

Q + ALEADERSHIPSTRATEGY LEGAL MATTERS

Graham Settleman

10/17/20234 min read

a gavel on top of a stack of books
a gavel on top of a stack of books

How to File a Dispute Against a Client

Disputes with clients can happen for a variety of reasons, such as unpaid invoices, dissatisfaction with services, or breach of contract. If you find yourself in a dispute with a client, it is important to know how to file a dispute against them.

Step 1: Gather evidence

Before you file a dispute against a client, it is important to gather all of the evidence that supports your case. This may include copies of invoices, contracts, emails, and other documentation. You should also keep a detailed record of all of your interactions with the client, including any conversations you have with them and any actions you take to try to resolve the dispute.

Step 2: Contact the client

Before you file a formal dispute, you should try to contact the client directly to see if you can resolve the issue amicably. This may involve sending them a letter or email outlining the dispute and requesting a resolution. If you are unable to resolve the dispute with the client directly, you may need to file a formal dispute.

Step 3: Choose a dispute resolution method

There are a number of different ways to resolve a dispute with a client. You may be able to resolve the dispute through mediation, arbitration, or litigation.

  • Mediation: Mediation is a voluntary process in which a neutral third party assists the two parties in reaching an agreement. Mediation is often the most efficient and cost-effective way to resolve a dispute.

  • Arbitration: Arbitration is a process in which a neutral third party hears the arguments of both sides and makes a binding decision. Arbitration is generally faster and less expensive than litigation, but it is important to note that you may not be able to appeal an arbitration decision.

  • Litigation: Litigation is the process of filing a lawsuit in court. Litigation is the most expensive and time-consuming way to resolve a dispute, but it may be the only option if you are unable to resolve the dispute through mediation or arbitration.

Step 4: File a dispute

If you have chosen to resolve the dispute through mediation or arbitration, you will need to file a dispute with the appropriate organisation. For example, if you are a member of the Better Business Bureau, you can file a dispute with the BBB. If you have a contract with the client, your contract may specify how disputes should be resolved.

If you have chosen to resolve the dispute through litigation, you will need to file a lawsuit in court. The process of filing a lawsuit will vary depending on the jurisdiction in which you are filing.

Step 5: Follow up

Once you have filed a dispute, you need to follow up with the appropriate organisation or court to ensure that the dispute is being processed properly. You should also keep a copy of all documentation related to the dispute, including any correspondence you receive from the other party or from the organisation or court.

Tips for filing a dispute against a client

Here are some tips for filing a dispute against a client:

  • Be prepared. Before you file a dispute, gather all of the evidence that supports your case and keep a detailed record of all of your interactions with the client.

  • Be professional. Even though you are in a dispute with the client, it is important to remain professional in all of your communications. This will help you to maintain your credibility and increase the chances of a successful resolution.

  • Be patient. The dispute resolution process can be time-consuming, so it is important to be patient. Keep following up with the appropriate organisation or court to ensure that the dispute is being processed properly.

Bringing it all together…

Filing a dispute against a client can be a daunting task, but it is important to know how to do so if you find yourself in a situation where you cannot resolve a dispute amicably. By following the steps above, you can increase your chances of a successful resolution.

Additional information

Here is some additional information about the different dispute resolution methods available:

  • Mediation: Mediation is a voluntary process in which a neutral third party assists the two parties in reaching an agreement. The mediator does not make any decisions for the parties; instead, they help the parties to communicate effectively and to explore possible solutions. Mediation is often successful because it allows the parties to maintain control over the outcome of the dispute.

  • Arbitration: Arbitration is a more formal dispute resolution process than mediation. In arbitration, a neutral third party hears the arguments of both sides and makes a binding decision. Arbitration is often faster and less expensive than litigation, but it is important to note that you may not be able to appeal an arbitration decision.

  • Litigation: Litigation is the process of filing a lawsuit in court. In litigation, a judge or jury will hear the arguments of both sides and make a decision. Litigation is the most expensive and time-consuming way to resolve a dispute, but it may be the only option if you are unable to resolve the dispute

Common disputes between businesses and clients

Here are some common disputes that can arise between businesses and clients:

  • Unpaid invoices: This is the most common type of dispute between businesses and clients. It can occur for a variety of reasons, such as dissatisfaction with services, financial hardship, or simply a disagreement over the amount owed.

  • Dissatisfaction with services: Clients may be dissatisfied with services for a variety of reasons, such as poor quality of work, missed deadlines, or unexpected costs.

  • Breach of contract: This can occur when either the business or the client fails to uphold their obligations under the contract.

  • Miscommunication: Disputes can also arise due to miscommunication between the business and the client. This can lead to misunderstandings about the scope of work, the timeline, or the cost of services.

How to prevent disputes with clients

The best way to prevent disputes with clients is to have clear and concise contracts in place. Your contracts should clearly outline the scope of work, the timeline, and the cost of services. You should also make sure to communicate regularly with your clients and to keep them updated on the progress of their project.

If you are unable to prevent a dispute with a client, it is important to act promptly and professionally. Try to resolve the dispute amicably through mediation or negotiation. If you are unable to resolve the dispute amicably, you may need to file a dispute with the appropriate organisation or court.

A Final Word

Disputes with clients can be frustrating and time-consuming, but they are a normal part of doing business. By following the tips above, you can increase your chances of preventing disputes and resolving them quickly and efficiently.

How to Resolve Your Dispute Quickly and Efficiently

Related Content