Business Law

ADR

alternative dispute resolution, the mthod of resolving legal disputes other than litigationsuch as negotiation, mediation , arbitration , summary jury trials, minitrials neutral case evaluations and private trials

Some companies create internal mediaion

ADR is faster and cheaper than litigation

Courts support ADR

Congress reconized ADR by passing the alternative dispute resolution act in 1998

This act requires that federal district court have a ADR program a long with a set of rules.

Negotiation

disputing parties interact informally to w/w out lawysers to attempt to reslolve the dispute

judges are not involved

parties can enter a negotiation one or 2 ways

Adversarial negotiation

each party tries to maximise its own gain

Problem solving negotiation

parties seek to join and gain

Mediation

a extensive negotiation

the parties eselect a neutral paty to help w communication and resolution

If a agreement is chosen , then a contract is produced

if there is no agreeement then the parties can turn to litigation or abitration to resolve their dispute.

There are more than 2500 state and federal rules about mediation

Advantages and disavatages of mediation

Keeps a working relationship between the 2 parties

a good potential for creative solution

EEOC encourages mediation they have a mediation program

Mediation is commonally used in environdmental disputes

Arbitration

One of the most requently used methods to resolve disputes

this is a resolution of dispute by a 3rd party outside a judicial setting

this is usually a voluntary process

usually parities have a contractual agreement to abritrate any disputes

if a party wants to have one, they send a written demand for arbitration

This demand

Identifies the parties involved

The dispute in issue

The type of relief claimed

The party usually responds to the demand in writing agreeing or disagreeing w the claim

to select a abritrator if the contract does not specify one,then the usually use a federal mediation and concilation services or american arbitration assouciation

the arbitration hearing is simular to a trial

both parties present their case to a third party

they may intrtoduce witnesses documentation , cross examiniation and closing statements

No official record of the hearing is kept

the rules of evidense applicatble in a trial are more relaxed than a trial

the arbitrator is more likely to question the witness than a judge would

the arbitrator is not constrained by present like judges are

the arbitrator usually comes up w a dection w in 30 days and its called a award

they do not have to state any findings of fact, conclutions of law or reasons to support the award

they are more likely to make a compromised rulling

their decition is legally binding but in certain cases the dection may be apeald to the distrci court but rarely granted

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