Law 531 – Riordan Altervative Dispute Resolution (adr) Policy
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Corporate Legal Plan-Team B
William E. Lowry
Law 531
March 2, 2011
Megan Hill, J.D.
Riordan Altervative Dispute Resolution (ADR) Policy
Limitation of Liability for Cost/Effort/Risk of Litigation
Prevention is the best defense against disputes, and disputes will happen to even the best firms. Riordan is no exception. Over the past five years, litigation of disputes have resulted in significant losses in time and cost. Simultaneously, our legal outsource team of Litteral & Finkel have amassed a fortune from our litigation. In addition, it appears that those we sue or those who sue us are equally vulnerable to the outcomes of this process. For example, if we are fortunate enough to win we will still be out the productive time wasted in depositions, witness subpoenas, lawyer meetings, court hearings, and the cost of attorneys fees (at least one-third of our recovery, if any), experts, court reporters, court costs, etal.
Therefore, with the new fiscal year commencing 01 October 2011, mediation is an absolute pre-requisite to filing litigation of any dispute at Riordan Manufacturing.
The Need for an ADR Policy
Many times in litigation, our executives do not get a realistic assessment of Riordans case; often, the only view he/she receives is our attorneys. In the same way that an expert report can help our executives for the opposing party see the potential downside of their case, alternative dispute resolution can be a useful reality check. During mediation, Riordan will hear the shortcomings of their cases directly, without the filter of a lawyers point of view. Mediation also gathers all parties in one place, which can prompt compromise and settlement. Statistically speaking, Riordan has approximately an 85% chance of saving approximately 85% of their dispute costs (as opposed to settlement costs which theoretically should stay the same) by using mediation.
Advantages of Mediation
Litigation is cost prohibitive and destroys relationships with our business partners, even when this would not be a desired outcome. Indeed, litigation exacerbates the business climate to the point where the parties can no longer function in a logical business-like manner. Somewhere the line crosses over to a more personal and emotional state of affairs. Even arbitration, will cost thousands, perhaps tens of thousands of dollars or more to resolve. So, an added benefit of mediation may be to retain the relationship between the disputing business parties.
Figure One-Meeting with the Mediator
The ADR Stipulations
The purpose of the ADR clause is to establish a less adversarial and hostile method for resolving disputes between Riordan Manufacturing and our valuable clients, contractors, partners, and subcontractors. Riordan has determined that our business relationships provide a competitive advantage and should be preserved if at all possible. Riordan believes that finding a win-win solution to its disputes allows all parties to achieve a fair and reasonable settlement. Disputes to be subject to this ADR process include:
Contract Disputes
Business, corporate and partnership disputes
Litigation management
Innovative resolution of contract disputes
Real estate and construction defects
Employment and discrimination matters
Table One-ADR Disputes
Riordan legal shall review all disputes prior to implementation of the mediation process. A special mediator familiar with the type of dispute and technology involved will be selected.
Strategic Partnerships International Transactions, Projects and Businesses
Technology Research and Development
Licensing and Transfers
Proprietary and Confidential Information
Consulting Agreements
Design and Engineering
Construction and Management