LAW531 – Business law
University of Phoenix
Traditional litigation system and Alternative dispute resolution
A number of legal ways are available toorganizations to solve disputes without the need for a formal and traditional process of litigation. Various forms of mediation, private judging, mini-trials, and moderated settlement conferences areavailable to companies, unable to independently to resolve their disputes but who wish to avoid the expense and delay of the full litigation process (Sherman, 2011).
Organizations prefer alternativedispute resolution to traditional litigation for different reasons; with alternative dispute resolution, the organization information, trade secrets, and other confidential information are not subjectto a judicial process, in which any person, media, or organization would have the right of access. Access to the information would give the competitors some advantage because they would be able tomisappropriate use of the confidential information. A traditional litigation process often results in public disclosure of organizations information and ADR procedures would allow the parties to resolvethe disputes but better protecting confidential information.
The traditional litigation processes do not allow achieving satisfactory negotiated results, and the free access to the confidentialinformation can result in high monetary costs, which can affect the organizations bottom line. Alternative dispute resolution give the litigants the opportunity to avoid many problems inherent in dealingwith traditional litigation process while allowing the parties to resolve the differences fairly, and can provide a cost-efficient alternative to the traditional legal system, which has high costs anddelays.
Advantages of ADR over traditional litigation processes
Each type of alternative dispute resolution offers different advantages and disadvantages, and would make the process far more...