Courts and ADR Every business person can expect to face at least one lawsuit in their career Where? –Federal Court –State Court –ADR Arbitration, Mediation, Negotiation

Courts Interpret and apply the laws in specific situations “justiciable controversy” Judicial Review Marbury v. Madison 1803

Jurisdiction In personam –Long arm statutes +minimum contacts Uberti In rem Subject Matter –General jx –Limited jx Original or Appellate

Venue The most appropriate location, usually in the county where the incident occurred. –Except when pretrial publicity would unfairly prejudice the defendants.

Standing A legally protected and tangible interest at stake. Either suffered a harm or been threatened with a harm. –Friends of the Earth, Inc. v. Crown Central Petroleum Corp.

Appellate Courts Questions of law, not questions of fact* –Not a new trial –No witnesses –Review the record only –Defer to the trial court on questions of fact –*unless clearly erroneous

ADR Advantages –Less costly –Faster resolution –More flexible remedies –Private resolution

Types of ADR Negotiation –Mini-trial, summary jury trials, conciliation, neutral case evaluation Mediation –Neutral third party –Courts may require this before trial Arbitration –Arbitrator renders a decision

Types of ADR (cont’d) Arbitration –Informal procedural rules –Leads to an award –Limited appeal process –Clause in commercial and employment K’s Gilmer v. Interstate/Johnson Lane Corp