Business Law
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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