Have you ever had a disagreement with someone? I'm sure you have - in our personal life, those disagreements likely began at an early age, with our siblings and our parents. We thereafter branched out, and began disagreeing with friends, boyfriends/girlfriends, teachers, bosses, co-workers, and eventually, spouses, your own children, and perhaps law enforcement (hopefully not too much of the latter). How you resolved those disagreements likely shaped who you have become, to some degree.
As we get older, these disagreements can become more difficult to quietly resolve; indeed, some get quite ugly - just look at the McCourt divorce (the extreme). Best friends have partnered to start businesses, only to separate a few years later, and no longer friends. The extent of the disagreement, however, can influence how the parties come away from such disputes. True, filing a lawsuit is perhaps the easiest method to force a resolution (other than giving in to the other's demands, perhaps). But it is the lawsuit which creates a course of action with a statutory end - trial. The problem, as those experienced in litigation can tell you, is that litigation costs $$$. More than that, however, it costs your time away from whatever you could be doing - like running your business. It's stressful, as well. You could end up losing. You could end up fighting in litigation for several months, and even years, before a final determination is made.
How can disputing parties resolve their differences without the cost and headaches associated in litigation? Through well planned alternative dispute resolution or "ADR". The concept is certainly not new, and indeed, ADR is strongly encouraged by the court system to reduce its large quantity of litigation. Several industries in the business world have addressed ADR through specific contractual language, such as requiring mediation and then waiving the right to court litigation in favor of binding arbitration. There are numerous different ADR companies - the American Arbitration Association ("AAA") may be one of the more well known, but there are others: JAMS-Endispute, Judicate West, ARC, and a whole litany of private ADR professionals waiting to assist angry sides resolve their differences.
Generally, ADR is less expensive than full-fledged court litigation, though not always. The huge factor in certain arbitration cases is that the matter is binding - thus, once a decision is finalized, neither side can appeal the arbitrator's ruling (yes, there are exceptions). In such case, a matter is often decided within a year or so of the date the demand was originally served. Still, binding arbitration remains similar to a "bench" (no jury) trial, and can extend on for several days, depending on the amount of evidence to be introduced by each side.
Mediation, a non-binding form of ADR, is a great way for sides to resolve differences prior to the final battle (binding arbitration or trial). Though non-binding, the two+ sides choose a neutral - usually a retired judge or a private attorney with several years experience - to listen to each side's primary case, and then to work each side into a compromised position - both sides give up something to reach an accord. In this case, giving up something ends up being a win/win since the time and cost of continuing to do battle cease should a settlement be reached.
It is important to note, however, that there are times when ADR is not beneficial to a particular case. Those times, as rare as they are, do exist. However, in most instances, ADR is an important tool utilized by disputing parties to keep costs down and time disputing minimized to a degree.
More on ADR to come ...
Have A Great Day!
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