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How To Think About High-Stakes Dispute Resolution
Michael Garg · 2026-05-22 · via Forbes - Innovation

Michael Gargiulo, CEO of VPN.com. We help Fortune 1000, entrepreneurs and companies protect their brand.

getty

​Many business leaders and founders struggle to think with clarity amid a serious dispute. If the stakes are high, the pressure meter can rise, which can affect the way people think, communicate and interact. One sentence that looked harmless in an agreement a month ago could suddenly take center stage today.

I’ve seen the same mistake show up again and again: Smart people treat dispute resolution as a legal problem only. It isn’t. It’s a legal problem, a business problem and often a reputational problem all at once.

If you approach a high-stakes dispute with too much emotion, too many words or too little structure, you can make a bad situation much worse.

The better approach is usually simpler: less drama, more clarity, fewer assumptions, better definitions and stronger advice from people who understand both the legal side and the business side.

High Stakes Change The Rules

A minor disagreement can sometimes be handled informally. A high-stakes dispute is different. Now you may be dealing with money that materially affects the company. You may be facing exposure that damages a brand, affects ownership, interrupts operations or creates lasting legal risk. In some cases, one bad decision can follow a business for years.

That’s where discipline matters most. The goal isn’t to sound aggressive. The goal is to become precise, focus on the facts at hand and identify viable resolutions.

Fewer Words Usually Win

Many people think a strong position needs long explanations. In my experience, the opposite is often true. The more serious the dispute, the more valuable clarity becomes.

Strong communication in a dispute should usually be clean and intentional:

What’s the issue?

What’s your position?

What are the facts supporting it?

What outcome are you seeking?

What happens next?

That structure sounds simple because it is. Simplicity is often a major advantage when the pressure is high.

This doesn’t mean every matter should be reduced to a few sentences. Some disputes require deep analysis, detailed documentation and carefully written filings. Still, the thinking behind those materials should stay concise. If your own team can’t explain the dispute clearly, you’re already at a disadvantage.

Ambiguity Is Expensive

A surprising number of major disputes start with something that was never clearly spelled out.

People agree in principle. They rush the draft. They assume everyone means the same thing. Then later, when money, control or performance becomes contentious, each side reads the same words in a completely different way. That’s when the trouble starts.

Spell out terms before you agree, not after. That includes payment timing, scope of work, approval rights, ownership rights, confidentiality, remedies, deadlines, termination rights, noncompete limits, jurisdiction, responsibility for failure and what happens when one side doesn’t perform.

Too many people focus on the headline terms and ignore the rest. Then they suffer the consequence of something left out. A missing sentence can be as dangerous as a bad one.

Organize Your Facts First

Disputes can get messy if you don’t have your facts organized. Start by getting your ducks in a row and your story straight. This means creating the timeline and gathering all documents, communications and agreements. Next, it means separating facts from what might feel unfair and what can actually be proven.

That process sounds basic, yet it’s where many cases are won or lost. Clean facts help you gain leverage. Confusing or vague ones do not. And opinions won’t carry much weight as the pressure meter rises.

Settlement Is Not Weakness

Some leaders treat a settlement like surrender. That’s a mistake. A strong settlement can be a smart business decision, especially when litigation risk, distraction and uncertainty start outweighing the value of “winning.”

The key is to settle from a position of thoughtfulness, not panic. That means understanding your exposure, leverage, evidence, costs and realistic alternatives. It also means knowing what must be protected and what can be traded.

Keep in mind that in some cases, it may be time to take on this fight. But in many instances, I've found it is a better approach to resolve the issues promptly, draw a clear line in the sand and invite the opposing side to make their next move.

The Best Time To Think About Disputes Is Before One Starts

Most serious disputes feel sudden, but many, in my view, are preventable. Loose contracts, unclear ownership, poor communication trails, rushed partnerships and undefined expectations create openings that later turn into major problems.

That’s why high-stakes dispute resolution really begins before the dispute. It begins with the drafting. It also begins with due diligence. It begins with how you document decisions, define responsibilities and think through downside scenarios before signing anything.

Parting Advice

Any high-stakes dispute can go beyond testing your legal argument; it can also test your judgment, patience and ability to forgive. This is why the best approach is almost always the clearest, not necessarily the loudest, one.

This translates into clearly defining terms and facts, obtaining credible legal counsel along the way and ensuring you implement your plan to protect your rights and the future of your brand.

In a serious dispute, what’s left unsaid can hurt you just as much as what’s said badly. Clarity isn’t a small advantage in those moments. It’s often the whole game.​​​


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