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Chapter 3 Handout

This document discusses alternative dispute resolution (ADR) methods for resolving disputes outside of traditional litigation. It describes negotiation as the simplest and least costly method, where parties work directly with or without attorneys. Mediation uses a neutral third party mediator to propose solutions and suggest settlements. Arbitration submits the dispute to an impartial arbitrator, whose decision the parties can agree to make legally binding. The arbitration hearing is informal, with procedures set by the parties and arbitrator. The arbitrator's award is binding unless it resulted from corruption, fraud, or bias. Court-ordered arbitration would make the arbitrator's decision binding.

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48 views4 pages

Chapter 3 Handout

This document discusses alternative dispute resolution (ADR) methods for resolving disputes outside of traditional litigation. It describes negotiation as the simplest and least costly method, where parties work directly with or without attorneys. Mediation uses a neutral third party mediator to propose solutions and suggest settlements. Arbitration submits the dispute to an impartial arbitrator, whose decision the parties can agree to make legally binding. The arbitration hearing is informal, with procedures set by the parties and arbitrator. The arbitrator's award is binding unless it resulted from corruption, fraud, or bias. Court-ordered arbitration would make the arbitrator's decision binding.

Uploaded by

dimitra triantos
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 3- ALTERNATIVE RESOLUTION

A. Alternative Dispute Resolution (ADR)


1. Alternative means to resolve disputes
2. Outside traditional judicial process
3. Less expensive and less time consuming than litigation
4. Any statements inadmissible if case proceeds to trial
5. Minimize antagonism between parties

B. Negotiation
1. Two parties with or without attorneys-third parties not necessary
2. Most informal
3. Conducted before and during litigation
4. Simplest form of ADR and least costly
5. Preparation improves odds of a favorable result
6. Joint problem solving and cooperative behavior

C. Conciliation/Facilitation
1. Introduction of a third party
2. Not adversarial
3. Carries offers and counteroffers back and forth
4. Generally does not offer solutions

D. Mediation
1. Uses the services of a neutral third party-Mediator
2. Unbiased and chosen by the parties
3. Professional playing an active role in finding solutions
4. Few formal rules and not adversarial and most informal
5. Proposes solutions and makes suggestions for settlement
6. Charges a fee
7. Parties must enter in good faith
E. Arbitration
1. Submission to an impartial third party-Arbitrator
2. Parties can agree to make legally binding by contract before claim
arises or by agreement after claim arises binding parties to the
decision reached by the arbitrator (Award)
3. Can be voluntary or ordered by the court (New Trial issues)
4. Favored by state and federal law (Federal Arbitration Act)
(Uniform Arbitration Act)
a. Give full affect to voluntary agreements
b. Providing procedures and remedies for enforcement of awards

F. Arbitration Hearing and Award


1. Informal and private
2. Arbitrator chosen by parties
3. Procedures set by parties and by arbitrator
4. Award binding on parties if by agreement unless:
a. Award was as a result of corruption, fraud, bias
5. Award may be appealed if court ordered (Trial de Novo)
G. Disadvantages of Arbitration
1. Decision not appealable-no written decisions
2. Little discovery
3. Unpredictable
4. Putting confidence in one person to hear the claim
5. Can be expensive
6. Mistake by Arbitrator not sufficient grounds for overruling

Ethanol Products, Inc. and Fuel Oil Corporation agree to submit a


dispute to arbitration. Garth, the arbitrator, is not a judge or a
lawyer.
1. The decision reached by Garth is called an ___________.
2. Is Garths decision binding? _____________
3. Why or why not is the decision binding? _____________
4. Under what circumstances if any may a decision reached by
Garth be reversed? _________________________________
5. How would court ordered arbitration affect whether or not
Garths decision is or is not binding? __________________

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