1. Chapter 4
Settling Legal Disputes: Alternative Dispute Resolution and Civil Lawsuits

2. Alternative Dispute Resolution
Conciliation
Mediation
Arbitration

3. Advantages of ADR
Faster, less stressful, and less expensive than litigation
Neutral party serves as judge and jury
Privacy of proceedings
Does not establish precedents as do court cases

4. Disadvantages of ADR
Contrary to our established jury system and the right to trial
Conducted by people other than legal professionals
Often favors one party
Settlements can be challenged in court
Can be entered into unwittingly

5. History of ADR Recognized in 1925 as the Federal Arbitration Act
Wilko v. Swan in 1953
Southland v. Keating in 1983
Mitsubishi Motors v. Soler Chrysler-Plymouth in 1985
Now, public opinion favors ADR

6. SEC Rules Regarding Arbitration
Introductory language explains effects of arbitration
Disclosures are conspicuous in the agreement
Agreements cannot deprive customers of their other legal remedies

7. The Role of Attorneys To raise persuasive arguments for their clients
To potentially speed the process
For more information about the American Bar Association, its members, and the relationship toward ADR, go

8. Attorney Fees Fixed or contingent in nature
Vary widely, depending upon these factors:
Geographical location
Type of fee
Represent high overhead expenses associated with running a law practice

9. Attorneys and the Middle Class
Judicare provides legal services for all people
Pro se litigants are people who act as their own attorney
Small claims courts have simplified procedures for collecting small amounts of money

10. Who May Sue? Standing Class actions
Controls the amount of litigation by letting only injured parties sue
Usually occurs in lawsuits involving public law
Important in environmental lawsuits
Class actions

11. Steps in a Civil Lawsuit
Cause of action
Complaint filed
Defendant served
Defendant answers
Pretrial hearing
Discovery
Motions
Trial, verdict, and judgment
Res judicata and appeals

12. Factors in Collecting Judgment
Judgment creditor and judgment debtor
Judgment proof or judgment debtor’s property
Exempt property
Exemption waivers
Writs of execution and garnishment

13. Factors in Collecting Judgment
Prejudgment attachment and garnishment
Consumer Protection Act of 1968
Bankruptcy
Transfer of ownership of property
Fraudulent transfers

14. Recap – Terms to Know Alternative dispute resolution Pro se litigants
Standing
Cause of action
Class actions
Jurisdiction
Complaint and answer
Pleadings, discoveries, and motions
Res judicata and appeals
Judgment, waiver, garnishment