When agreements break down.
WHAT OPTIONS EXIST
Negotiation Mediation Arbitration Litigation
WHAT NEGOTIATION COSTS
Little, and it preserves the relationship.
WHAT MEDIATION PROVIDES
A neutral facilitator, without a binding determination.
WHAT ARBITRATION PROVIDES
A binding determination, privately.
WHAT IT COSTS
Arbitrator fees, which can be substantial.
WHAT LITIGATION PROVIDES
Court determination and enforcement.
WHAT IT COSTS
Time, expense and publicity.
WHAT TO CONSIDER ABOUT TIMELINES
Court processes can extend over years.
WHY THAT MATTERS COMMERCIALLY
A judgment years later may be worth little.
WHAT TO AGREE IN CONTRACTS
The mechanism, in advance.
WHAT AN ARBITRATION CLAUSE SHOULD SPECIFY
The rules The seat The number of arbitrators The language
WHY SPECIFICITY MATTERS
Vague clauses produce disputes about the dispute mechanism.
WHAT SPECIALISED COURTS EXIST
The industrial court, for employment matters Commercial divisions, in some jurisdictions
WHAT TO DO BEFORE COMMENCING ANYTHING
Assess the cost against the amount Assess whether the counterparty can pay Take advice
WHY THAT SECOND POINT
A judgment against an entity with nothing is worthless.
WHAT TO PRESERVE
Every document and communication.
