Alternative Dispute Resolution Tips
Tips on Alternative Dispute Resolution
Have you ever noticed how small children settle disputes. There is usually a great deal of screaming and sometimes an occasional push or shove. However, no matter what the results, generally speaking, the children are playing again 5 or 10 minutes later. The entire fight is often forgotten.
Adults, on the other hand, rarely have the ability to forgive and forget. Pride and egos often get in the way. An adult, often without thinking, can back himself into a very tight corner from which there is no easy exit. The exit from this corner can be embarrassing. The adult will 'loose face'. Because of these reasons, adults tend to take a very hardened stance when a dispute occurs.
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This problem is magnified when you factor in another variable. Very few adults are willing to admit that they have made a mistake. Once again, they fear that they will look bad or appear 'weak'.
This situation causes adults to dig in their heels when a dispute arises. No one wants to back down. Very few adults will are willing to readily accept the consequences of their mistakes.
For example, let's assume that a disorganized contractor fails to obtain change orders in writing. Weeks go by and there is a dispute as to what exactly was supposed to be done and for how much money. Bingo! The contractor feels he is being cheated and fails to realize that he alone is to blame for the entire problem.
Example #2: A homeowner approves a paint color selection. After painting the room, the homeowner says that the color is too 'strong'. The homeowner blames the paint company and refuses to pay for the job. There are thousands of scenarios.
What To Do
Historically, very few filed suits actually make it to the trial stage. In fact, almost 97% of the time, the dispute is settled prior to going to trial! Frequently, a settlement is reached before the trial. But getting to the solution can be long and painful. Egos control this.
Remember, very few people are willing to readily admit that they made a mistake. Their egos blind them and they loose sight of what is really happening. They often fail to look at the business side of the equation. They have an axe to grind.
However, note that the dispute is eventually settled! Also, it doesn't take a rocket scientist to figure out that long drawn out court proceedings are extremely costly and a tremendous drain personally. The time and energy that one spends trying to 'save face' can be enormous.
Getting to Yes is an aid to helping people come to mutually acceptable agreements from various sorts of disputes. CLICK THE IMAGE to get the book now.
Alternative dispute resolution is a very viable method to settle differences. There are several methods that you can employ: Negotiation -- Mediation -- Arbitration -- Private Judging. Each of the methods has its pros and cons. Each method has a different price tag.
In almost all cases, any of the methods will save vast sums of money and time in getting to the final decision. The downside risk is very small. Just as in court cases, the end results can be unpredictable. However, the results are the same as a long drawn out court battle. In other words, the dispute gets settled!
The trick to a successful dispute resolution is really quite simple. Because people involved in a dispute rarely agree on anything once the dispute has started, you must decide what you are going to do before the dispute begins.
This is rarely done in practice. However, smart parties to a contract will decide such matters and include the necessary clauses in the contract documents. It is a very practical thing to do.
Tips On Alternative Dispute Resolution
The first thing that you should do prior to inserting language in your contract concerning dispute resolution is to contact a competent CONTRACT attorney in your state. Make sure that you can, in fact, insert language of this type into your contract. Some states have very specific conditions with respect to dispute resolution. Sometimes certain rights are given up if you choose dispute resolution. Make sure that it is the right 'fit' for your circumstance.
Assuming that you can do alternative dispute resolution in your state, consider the following:
- Clearly state the method or methods which will be used to reach a settlement.
- Select the person or agency which will handle the dispute resolution in advance. Insert this selection into the dispute resolution clause of your contract!
- Include language as to who is responsible for paying for the dispute resolution. You can have the winner pay, or in the event of a split decision, each party can pay its proportional share. - Specify if the decision of the individual or agency will be final. Beware of this condition!!! Many people have been disappointed with forms of dispute resolution such as binding arbitration. Leave yourself an 'out' in case the dispute resolution is grossly in error.
- Indicate the time period by which the monies must be paid once the dispute decision is reached.
Alternative Dispute Resolution Organizations
Before you get involved in a dispute, spend a little time and contact all of the following organizations. They will provide you with information concerning their organization, their affiliates, and / or association members. Some information is free, some is not.
- Contact your local bar association. Ask them if there is a local dispute resolution center in your town or city. Often they are very helpful.
- Contact your local Better Business Bureau. Many local BBBs offer alternative dispute resolution services to the general public. The contractor you have the problem with does not necessarily have to be a member of the BBB to participate. However, some members of your BBB may already be signed up for these programs. Your local BBB can fill you in on the details. Do not hesitate to call them!!!
- Contact the following organizations for additional information:
- National Institute for Dispute Resolution
1726 M Street
N.W. Washington D.C. 20036
202-466-4764
Free referrals to local resolution centers. - Society of Professionals in Dispute Resolution
815 15th Street N.W.
Washington D.C. 20005
202-783-7277
Membership Directory available for $25 plus $3 shipping/handling - American Arbitration Association
140 W. 51st Street
New York, New York 10020
212-484-4000
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