Alternative Dispute Resolution - Acme Inc and Imperial Corp - Case Study Example

Since litigation would focus on an 'ambiguous' clause in the contract neither party can be sure how it would turn out.
Any delays or interruptions in their relationship caused by litigation could have a devastating impact on both parties regardless of which party is ultimately vindicated in the courts. Acme would find itself without essential parts that are hard to source elsewhere. Imperial could find itself with a sudden, severe decrease in its cash flow. It might also have to lay off employees and have equipment sit idle. Simply put, litigation, regardless of the outcome could do irreparable damage to both parties.

In this case, negotiation would be the appropriate form of alternative dispute resolution to pursue. The two parties need to sit down face-to-face. They need to lay out their understanding of the 'ambiguous' clause in the contract, seek common ground, and perhaps by consent share any costs or losses involved in their differing interpretations of the clause. If negotiation proves fruitless they should move to mediation. Then an objective and disinterested third party could assist them in understanding one another's position and finding a middle ground. (Marsh, 2008)

Case #2: Hightech Ltd. And Megasoft Inc.
Litigation must be avoided at all costs in this case. A trial would force both parties to reveal, on the record, trade secrets.
The complexity of the case and the likelihood of a jury not understanding it means that the outcome of litigation is entirely unknown. Consequently, it could prove damaging to one or both parties.

Due to the complexity of the case collaborative law would be the best approach. The case, too complex for a jury, might also be too complex for a mediator or arbitrator, regardless of their qualifications and experience. Therefore, the parties would be wise to sit down together, with their lawyers accompanying them, and work towards an agreement on camera with trained lawyers, able to understand the complexity of the case. If they were to negotiate in good faith, in this private environment with expert legal advice they stand the best chance of resolving the dispute in a fair manner that also takes account of the legal complexities of the situation. Collaborative law would also ensure that the case never ended up in court. Read More