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More businesses are turning to alternative dispute resolution techniques (ADR) to resolve disputes with contractors, suppliers, and other businesses with which they deal. Mediation and Arbitration are two ADR techniques that are quicker, less expensive, and usually more satisfactory than litigation in the courts. Every business needs to understand these effective alternatives to litigation.
What is mediation?
Mediation is a voluntary, nonbinding process by which the parties to a dispute, with the help of an impartial mediator, meet and attempt to negotiate a mutually satisfactory settlement.
Why mediate?
Because mediation generally:
- Reduces legal costs.
- Saves time and avoids delay.
- Eliminates the risk of an adverse verdict.
- Provides a result each party can live with.
- Ends the dispute, finally and forever.
In particular cases, mediation may also:
- Avoid adverse publicity.
- Help preserve an ongoing business or personal relationship between the parties.
- Prevent an adverse legal precedent or potential exposure in other lawsuits.
What kinds of disputes can be mediated?
All types of civil disputes can be resolved through mediation, including:
- Personal injury lawsuits.
- Business and commercial litigation.
- Environmental disputes.
- Labor and employment conflicts.
- Real estate controversies.
- Construction cases.
- Securities claims.
- Intra-governmental disputes.
Why does mediation work?
Mediation provides a forum for all interested parties to meet in one place and focus on the issue of settlement at one time. This is especially helpful to resolution of multi-party cases and cases involving parties with subrogation rights or insurance coverage issues.
Mediation techniques, properly employed, reduce the natural hostility and distrust among adversaries and create an environment conducive to negotiation, compromise, and settlement.
Mediation empowers the parties (rather than the lawyers or a judge or jury) with control over resolution of their dispute on their own terms. The mediator, as a neutral third party, can examine the dispute objectively and educate uninformed or naturally biased parties about the true strengths and weaknesses of their positions.
The mediation process itself often satisfies the litigant who must "get something off his chest," almost as if he had his "day in court." A good mediator can identify the parties' real interests and facilitate meaningful settlement negotiations based upon the parties' interests. Mediation enables the parties to structure not only traditional settlements that require payment of money, but also creative settlements that meet the parties' special needs. |
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What is arbitration?
Arbitration is a process in which the parties select a neutral person or persons to resolve their dispute. Unless the parties agree otherwise, the arbitration is binding and gives a final result for the dispute. In most instances, there is no appeal from the arbitration decision, so the matter is finally and quickly disposed of.
Why arbitrate?
Because arbitration:
- Saves time and avoids delay.
- Reduces legal costs.
- Avoids adverse publicity.
- Can prevent an adverse legal precedent or potential exposure in other lawsuits.
What kinds of disputes can be arbitrated?
All types of civil disputes can be resolved through arbitration, including:
- Personal injury lawsuits.
- Business and commercial litigation.
- Environmental disputes.
- Labor and employment conflicts.
- Real estate controversies.
- Construction cases.
- Securities claims.
- Intra-governmental disputes.
Why does arbitration work?
Arbitration resolves disputes quickly so the parties can get on with their business. A substantial number of business and insurance contracts now incorporate arbitration as their choice for resolving disputes. In fact, many contracts now provide first for mediation, and then for arbitration in the event the parties do not settle their disputes. Most disputes usually settle at mediation and arbitration then becomes unnecessary, again saving time and money for the parties. For further information, please contact:
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