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Dispute Resolution
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Essay Subject:
Examines the process of Alternate Dispute Resolution (ADR), which often shortens the duration of cases otherwise sent to court, as well as saving costs related with court actions.... More...
6 Pages / 1350 Words
5 sources, 12 Citations, APA Format
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Paper Abstract:
Examines the process of Alternate Dispute Resolution (ADR), which often shortens the duration of cases otherwise sent to court, as well as saving costs related with court actions.

Paper Introduction:
Dispute Resolution Introduction Although business and law are consistent features of everyday life in the United States, the presence of the lawsuit and adjacent litigation has caused many of us to consider that there are really only two classes of citizens. The first class of citizen is the litigant. The second class of citizen is the potential litigant. Of course this is a tongue-in-check comment, but it sometimes seems that newspapers and television spend a tremendous amount of time concentrating on the status of suits, legal wrangling, and the subsequent fallout from their outcome. What seems clear is that while business law must be explicit on the subject of suites, other means of settling disputes, real or

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Every woman in the case will likely hire a lawyer torepresent her in the adjudication process. Of course this is a tongue-in-check comment, but it sometimes seemsthat newspapers and television spend a tremendous amount of timeconcentrating on the status of suits, legal wrangling, and the subsequentfallout from their outcome. Robert Mead, vice president of the American ArbitrationAssociation, a New York-based nonprofit group that coordinates arbitrationcases, said he has helped 3 companies set up ADR programs over the last24 months. The American Arbitration Association charges a flat fee of $5 foremployment cases, according to Mr. Mead. Four methods ofcomparison showed that the duration of an ADR case was between two and sixmonths shorter than the duration of a non-ADR case. [On-line]. Of the survey respondents, amajority believed that the outcome would have been about the same with orwithout the use of ADR (Schuyler, 1993). Thepair previously had been in partnership in the law firm King & Gautschi(Sather, 1997). (1998, April 13). More disputes being settled through ADR. A $1 , dispute costs $5 ; disputes involving morethan $5 million cost $7, . Settlement dalayed in Wall St. The article entitled, "Getting More for Less in Commercial Disputes,"from the journal, The Greater Columbus Business Authority, on April 13,1998, makes this point quite clearly. It would berefereed by a Wall Street outsider - The Private Adjudication Center ofDuke University. Resolving rows before they end up incourt. Available: http://www.nypostonline.com/ 41 98/news/1752.htm Neiser, J. The estimated cost savingsthrough the use of ADR range from $223 to $659 per case (Schuyler, 1993). The majority of the private attorneys who responded to a follow-upsurvey were comfortable with the use of in-house mediators and the processof mediation. Commercial disputes are based ontransaction amounts. A comparison of non-ADR andADR cases showed that, in general, the average cost of an ADR case was lessthan the average cost of a non-ADR case. L. A regression analysisand a survey of participants also supported the conclusion that, ingeneral, the use of ADR tended to reduce the duration of a case (Schuyler,1993). The commission looked at the high number ofworkplace disputes that resulted in costly litigation. According to the data collected, the average duration of an ADR casewas lower than the average duration of a non-ADR case. The first class of citizen is the litigant. The question then becomes, how useful isdispute resolution in the real world of business law?An ADR Study Several years ago, the Department of Labor undertook a pilot projectto test the cost effectiveness, timeliness, and general usefulness of ADRmethods versus traditional methods of trial. It recommended inits December 1994 report that private companies be encouraged to develophigh-quality, private dispute-resolution procedures as an alternative tolitigation. Manhattan District Judge Constance BakerMotley said she wanted more details on how lawyers would be selected torepresent the 22, -plus women covered before she would approve thecomplex agreement (Cohen, 1998). [On-line]. Currently about 3.5 million companies have such programs inplace. Mr. Tunnell is careful to delineatebetween the disputes that can be resolved by alternate dispute resolution(ADR) and those that cannot. (1993, AUGUST 26). [On-line].Available: http://dol.gov/ dol/asp/public/programs/adr/padrtitl.htm. The fourmethods of calculated comparisons demonstrate that ADR cases, on average,resulted in higher settlements. By contrast, the regression analysispredicted that settlements from the ADR cases were lower than would havebeen realized if ADR had not been used. In contrast, a one-day deposition alone cancost $3, for legal and court fees, Mr. Mead said -- often just the tipof the iceberg in a court case (Neiser, 1997).Dispute Resolution as a Control In reference to Mr. Tunnells' article on saving time and money in theworkplace ADR cannot solve all the problems inherent in bringinglitigation. The analysis of settlements produced inconsistent results. In a case reported in the New York Post of April 1 , 1998, the SalomonSmith Barney sexual-harassment case, the judge halted settlement becausedispute resolution rules were inadequate with regard to the large number ofdefendants and lawyers involved. A cost analysis of theDepartment of Labor's Philedelphia ADR pilot project. (1998). sex-harass case.New York Post Home. In general, they believed that they saved resources andresolved the cases more quickly through the ADR program (Schuyler, 1993).Real Time Examples There are other factors driving the burgeoning field of disputeresolution, but it all comes down to time wasted and money spent. The second class ofcitizen is the potential litigant. Mr.Gautschi says resorting to litigation to resolve disputes between employersand employees not only results in staggering legal fees, but it leads tolower productivity and higher turnover in personnel (Sather, 1997). Every process designed to be fair and equitable eventuallyruns into some situation that calls for modification or change. References Cohen, E. It is the largest class-action suit in the history of Wall Street.The proposed settlement would scuttle mandatory arbitration usually used onWall St. The author of the article, KurtTunnell, remarks that "Despite emphasizing greater efficiency andeffectiveness, many executives have not devoted enough attention toavoiding one of the biggest drains of company resources, reputation andproductivity: commercial lawsuits" (Tunnell, 1998). The commission qualified its recommendation that private companiesdevelop alternative dispute-resolution procedures in one important way --that these in-house dispute-resolution systems should "not (be) imposedunilaterally by employers as a condition of employment" (Sather, 1997). While business law exists (in part) to clarify and settle the everydaydisputes that arise in business, the idea of saving time and energy, whiledevoting resources to the more important details of getting on with life inthe business lane, is very appealing. ADR maybe a better way in some cases. Mr. Gautschi says he was inspired to form his new firm, in part, bythe findings of a government commission, the Commission on the Future ofWorker-Management Relations. The Greater Columbus Business Authority. As ADR isable to a point to take some of the expense out of litigation, ADR itselfneeds course correction. Available:http://www.amcity.com/ seattle/stories/ 12 97/focus4.html. [On-line]. Rick Gautschi, a Seattle lawyer who also has an MBA and a doctorate inbusiness administration, and his partner, retired Mason County DistrictCourt Judge Larry King, are launching a new business to help companies setup their own in-house programs to handle workplace disputes. A growing number of companies are requiring that employees withgrievances pursue alternative dispute resolution, known as ADR, in whichdifferences are quickly decided by an arbitration board instead of througha lawsuit. (1997, January 2 ). Sather, J. Getting more for less in commercialdisputes. There may be a fewmore years of 'shaking out' before ADR is completely accepted, butprofessional organizations are making sure that ADR is here to stay. Although the total cost of workplace disputes is difficult toquantify, experts agree that many more suits of this type are filed than inthe past, and they take a steep toll on the organizations involved. The firm, theConcordance Group, will open its doors this month, with offices in bothSeattle, where Gautschi is based, and Olympia, where King is located. Tunnell, K. Puget Sound Business Journal. Dispute ResolutionIntroduction Although business and law are consistent features of everyday life inthe United States, the presence of the lawsuit and adjacent litigation hascaused many of us to consider that there are really only two classes ofcitizens. Available: http://www.amcity.com/pittsburgh/stories/ 3 397/focus1.html. [On-line]. According to the judge, that'sthe problem, "lawyers will be moving right in on this gravy train,"suggesting that some unscrupulous lawyers might try to take advantage ofsome the plaintiffs (Cohen, 1998).Conclusion Alternate dispute resolution is a welcome alternative to the usualremedies for handling complaint within business law. "Companies have realized that the court is not a place to solve abusiness dispute, especially if you want to continue doing business withthat company," Mr. Mead said (Neiser, 1997). What seems clear is that while business lawmust be explicit on the subject of suites, other means of settlingdisputes, real or imagined, exist. Available:http:// www.amcity.com/columbus/stories/ 41398/editorial3.html. Schuyler, M. Pittsburgh Business Times. (1997, March 3). in favor of a three-part dispute-resolution system.

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