Dispute Resolution

Question 1

Describe the common methods of dispute resolutions (list 5), and provide 1 advantage and disadvantage for each.

Answer 1

■ Negotiation – process where two parties reach a settlement between themselves that they both agree on.
A: no additional fee
D: Voluntary
■ Non-binding decision of third party – decision made by a person with expertise.
A: Fast
D: Non-binding
■ Mediation – the mediator assists each party to understand the other party’s interest
A: High chance of success
D: Non-binding
■ Arbitration – process where the decision is made by a arbitrator selected by the parties.
A: Private
D: Expensive
■ Litigation – a judge decides the outcome.
A: Rights of appeal
D:Litigation risk

Question 2

What are the 6 steps to litigation?

Answer 2

1. Pleadings
2. Discovery
3. Pre-trial Disposition
4. Trial
5. Appeal
6. Costs

Question 3

Excluding cost, what are 4 advantages of arbitration over litigation?

Answer 3

■ Less time
■ Judges often don’t have a technical background on the matter
■ binding
■ Relationships can be maintained

Question 4

The term “without prejudice” is meant to promote the free exchange of information to facilitate a settlement. What does the term mean? Why would a contractor approach “without prejudice” with skepticism?

Answer 4

“Without prejudice” is a legal term indicating that a communication or document cannot be used as evidence in court to encourage parties to communicate and negotiate openly and freely