Dispute Resolution and American Arbitration Association Essay

Submitted By xzlolee
Words: 1583
Pages: 7
Open Document
Traditional Litigation versus Alternative Dispute Resolution (ADR): Which Way to Go?

An important decision must be made, assuming you feel you have a strong case for your client: should you go forward with traditional lawsuit that is tried in a court or opt for a more informal process called alternative dispute resolution?
The popularity of ADR has grown steadily over the years with almost 90% of all cases resolved through some form of ADR before trial. Typically, advantages of ADR over trial includes such things as:

* Less formal and therefore less intimidating. * Quicker resolution. * Less expensive. * Heard by an arbitrator or mediator. * At the end, you get an opinion. * After binding ADR, the opinion can usually be filed with a court and turned into a judgment.

Trial, by comparison, provides for:

* A more formal process. * Slower process (rules of evidence must be followed, jury trials can slow the process significantly, etc.) * More expensive (the longer the trial the more the attorney fees). * Heard before a judge (often times my clients insist that the cases be heard and decided by a judge, someone who wears a robe). * At the end you get a judgment, in a collection case, this is significant. You need to be able to enforce it once it’s over. * Judgments are enforceable through the court system.

Possible advantages of a lawsuit over ADR

* Simple forms of ADR usually provide a cost savings over litigation. Remember, you pay your decision maker by the hour however. Even if the cost of ADR is split with the other side, that cost can add up quickly. For more formal ADR, you might still end up engaged in a protractive discovery and depositions that make litigation costly. For a larger case, arbitration by the American Arbitration Association rules may cost the same or even exceed the cost of standard litigation. * Mediators and arbitrators are usually free to decide cases without regard to case precedence, making the outcome of your case somewhat unpredictable. Even when they are wrong, you may not be able to appeal. * In litigation, the rules of discovery allow you to get certain documents, testimony and other evidence out of an unwilling opponent. Those rules may or may not apply in ADR, so you may be giving up an opportunity to find out what’s hidden in your opponent’s files, and you may not know what your opponent is going to offer as evidence until you actually get to the hearing. * If the debtor has a counterclaim, it may be possible for the debtor to force you to litigate that counterclaim in court even if you have a binding contractual provision for arbitration of your own claims against the debtor. If you’re going to end up in court anyway, it is usually cheaper to resolve all claims in a single lawsuit. * If you chose non binding ADR, the final award is not enforceable as a judgment, and both sides may find the process is an expensive waste of time. * If your debtor has not agreed to ADR by contract, and won’t agree to submit your dispute to ADR, you must proceed with a lawsuit and a form of ADR may result as a result of the litigation process.

Collection Cases – If you have an adequate remedy through the court system, the debtor may have assets you can take as part of the judgment enforcement process through a sheriff or through garnishment. A claim and delivery is a situation where you would want to go to court with a standard litigation process and not through ADR. Part of claim and delivery allows you to gain possession of the secured property pending the final outcome of the case.

* Where the chances of winning the case are good, it’s a clear cut promissory note or other simple collection matter, where the documentation is adequate and you have good witnesses or where you anticipate getting a quick default judgment, litigation is the way to go. You can’t mediate or arbitrate with someone who
Show More

Related Documents: Dispute Resolution and American Arbitration Association Essay

Contract and Adr clause Essay

US Programming Company and Global Bank Dispute Both parties are subject to the CISG. The computer programming company is based in the U.S., made the CISG effective January 1st 1988. The US only filed an Article 95 declaration and in pursuant to the article, the United States will not be bound by subparagraph 1 (b) of article 1 of the CISG. Spain adopted the CISG and it became effective in August 1st 1991. Yes, the parties can make the CISG part of their contract.Under article 1, the parties…

Words 940 - Pages 4

Essay on International: United Nations and International Business Transactions

International Legal and Ethical Issues Teresa Knight Law/421 November 24, 2014 Kathryn Hays International Legal and Ethical Issues International law has traditionally been defined in very broad terms and not limited simply to rules that are applied to settle disputes in court. Rather, international law is influenced by a combination of law, religious tenets, and diplomatic relations between nations. This broad definition makes enforcement of international laws challenging, and adherence to international law is…

Words 1115 - Pages 5

Making E Discovery Work You International Arbitration Essay

Making E-Discovery Work for You in International Arbitration David N. Paris – dparis@srr.com Tomoko Tatara – ttatara@srr.com Electronic Discovery (also referred to as E-discovery) has become As digital technology has evolved, computers and smart phones an integral part of the discovery process in complex commercial have become common tools for businesses and individuals. disputes in U.S. Courts. Recently, it has also been gaining More of the company information used and communicated in the…

Words 2725 - Pages 11

Margolin V Funny Face Summary

Now states all disputes will be held in Florida. Jurisdiction determines…

Words 1026 - Pages 5

Lemon Laws Essay

have legal recourse under Florida's Lemon Law. Officially titled the Motor Vehicle Warranty Enforcement Act, the law provides arbitration for car owners with complaints, and can result in a full refund or replacement vehicle. You're on your own with a used car, however; the law applies only to the purchase or long-term lease of a new car. To be eligible for arbitration: The defect or condition must "substantially impair the use, value, or safety" of the vehicle. The car must have been taken…

Words 3427 - Pages 14

Essay on Traditional and Nontraditional

to both systems. “Alternative Dispute Resolution ("ADR") refers to any means of settling disputes outside of the courtroom. ADR typically includes early neutral evaluation, negotiation, conciliation, mediation, and arbitration.” (Cornell University Law School, 2012) Non-Traditional Litigation System The nontraditional litigation is an alternative dispute resolution to the traditional litigation system. This type of resolution can save both parties a lot of…

Words 790 - Pages 4

Essay about Alternative Dispute Resolution (Adr) Strategies Research Worksheet Resolving Employment Conflict

Alternative Dispute Resolution (ADR) Strategies Research Worksheet Resolving employment Conflict Topic : Alternative Dispute Resolution Response to Topic A: General Motors (Negotiation) ADR is generally classified into at least four types: negotiation, mediation, collaborative law, and arbitration. In negotiation, participation is voluntary and there is no third party who facilitates the resolution process or imposes a resolution (Alternative Dispute Resolution, para…

Words 2873 - Pages 12

Essay on Application of International Law

Coolidge signed the Federal Arbitration Act (FAA) into law in 1925, to be effective on January 1, 1926. (Wikipedia, 2014). “International commercial arbitration in Russia is governed by another statute: Law No. 5338-1 . . . It follows the UNCITRAL Model Law almost verbatim.” (Nikiforov, 2013). Both were “enacted to establish validity and enforcement of arbitration agreements”. (James, 2011). An arbitration agreement is then written to solve disputes later on. An arbitration agreement should include…

Words 1132 - Pages 5

Essay on History: Major League Baseball and Players

and this rule is called the “Curt Flood Rule” sometimes. 2) After nine years of the creation of the National League and before six years of the creation of American League, in 1900, the Player’s Protective Association which included players was created. The Fraternity of Professional Baseball America was created in 1912, and the American Baseball Guild is organized in 1946. None of these efforts was enough for demise of the reserve clause which bounds players to their respective teams. In 1965…

Words 1324 - Pages 6

Essay on United States Constitution and Points Question

http://quizlet.com/15035841/test-1-bl-flash-cards/ http://www-rohan.sdsu.edu/faculty/dunnweb/rprnts.friedman.dunn.pdf Question 1 1. In his article “Is business bluffing ethical?,” Albert Carr makes a distinction between an “unethical” poker player and a “crook.” Answer True False 1 points Question 2 1. According to Milton Friedman, all of the following are reasons not to use corporate funds to serve social causes EXCEPT: Answer | | It’s a form of taxation without representation…

Words 12115 - Pages 49