1. Dispute Settlement: ALTERNATIVE DISPUTE RESOLUTION Chapter 3

2. Alternative Dispute Resolution Systems Expense Time, Cost, Emotions MostLeast Trial & Appeal Arbitration Mock Trial Minitrial Mediation NegotiatedSettlement

3. Reasons For Settlement Without Litigation Costs Attorney’s Fees Court Costs Personal Reasons Compromise Is Instinctive Dislike Of Trouble Opinion Of Others Business Reasons Bad For Business Sympathetic Juries

4. Concerns with Using ADR Conflict with Constitution? Legal system for the poor Threat to common law system May need precedent Unfair advantage Is it really confidential?

5. Types Of Negotiations Position-Based Interest-Based

6. Getting to Yes The Seven Elements of Negotiation  INTERESTS What do people really want?  OPTIONS What are possible agreements or bits of an agreement?  ALTERNATIVES What will I do if we do not agree?  LEGITIMACY What criteria will I use to persuade each of us that we are not being ripped off?

7. The Seven Elements of Negotiation (cont’d)  COMMUNICATION Am I ready to listen and talk effectively?  RELATIONSHIP Am I ready to deal with the relationship?  COMMITMENT What commitments should I seek or make?

8. Mediation Third Party Assists In Resolving Dispute- Avoid Litigation Parties Agree To Use Reduces Court Caseload- No Judicial Review Settlement = Mutual Choice

9. Mediation Advantage To Parties Determine To Pursue Retain Control Of Outcome Disadvantage No Enforcement Selection Mediator- Qualifications

10. Mediation Procedures Mediator Opening Statement/Rules Parties View StatementView Statement ExchangeExchange Discuss Options- CaucusDiscuss Options- Caucus AgreementWritten/Signed

11. Typical Arbitration Contracts 1)Stockbroker & Client 2)Commodities Broker & Customer 3)Brokerage Firm & Employee 4)Attorney & Client 5)Collective Bargaining 6)Owner-Contractor & Contractor- Subcontractor 7)Insurance Co. & Insured 8)Public Carrier & Shipper 9)International 10)Technical cases

12. Arbitrators Chosen By Disputing Parties Expertise Knowledge of “Common Law Of Shop” Beyond Legal Expertise Number = 1 – 3 Authority- Granted By Agreement

13. Arbitration Third Party (Arbitrator) Makes Final Decision Mandatory v. Voluntary Final Decision (Award)- Binding Reasons Quick/Inexpensive Resolution Ease Court Dockets Expert Assistance

14. Voluntary And Contract-Based Arbitration Parties Agree To Method By: Original Agreement/Contract Parties Agreement

15. Mandated Arbitration States Adopting Speeds Up Process Many Qualified Arbitrators Types Of Cases <$15,000 Specific Subject Matter Record Of Proceedings Required

16. Judicial Review Of Arbitration Voluntary/Contract-Based Award Is Final Findings Of Fact/Law- Conclusive Limited Correct Fraudulent/Arbitrary Actions/Against Public Policy Statutorily-Mandated In Accord With Procedural/Due Process Law De Novo Federal Arbitration Act

17. Enacted 1925 Revised/Reenacted 1947 Policy Interstate Commerce Favors Use State Law- Supremacy Of U.S. Constitution/Commerce Clause

18. ADR Act of 1998 Requires creation of ADR programs in the federal district courts.

19. Other ADR Alternatives Combination Mock Trial Citizen Review Reality For Plaintiff Minitrial- Confidential Focus On Central Issues Back To Business Problem 3rd Party Neutral-decision is nonbinding

20. Other ADR Alternatives Summary Jury Trial Nonbinding jury trial Case Evaluation or Early Neutral Evaluation A lawyer with expertise in the field assists parties in streamlining the case, and possibly arriving at settlement