Question

1. What are the downsides of litigation?

2. What are the benefits of the various forms of alternative dispute resolution? Provide 2-3 reasons why you as a business owner or manager would choose to use an alternative dispute resolution format (and name what type of ADR you would choose).

3. What are the downsides of the various forms of alternative dispute resolution?

4. Choose one business dispute from the news or the world around us and explain whether, if you were the owner of the business and had the option, you would choose to move forward with litigation or an alternative dispute resolution method. And why.

Answer 1

Ans 1) The downsides of litigation are given below-

• In litigation, a formal legal procedure has to be followed to get the final result and hence it takes much time and sometimes even years to solve a particular case.
• Litigation process is much costlier than other methods of dispute resolution as one has to pay a certain amount of fees to lawyer's and not only these there are other fees too associated with the case which needs to be paid from time to time by the parties.
• When disputes are settled through litigation then the judge gives their decision by looking at the evidence produced by both the parties and it damages the relationship between two parties who have to come to court before everyone to settle their disputes and even after the judge gives their decision the relationship never seems to be good anywhere and it does not matter whether it is personal or professional between both the parties. One always thinks bad about the other.
• In litigation, certain dates are given by the court for hearing the case and during such dates, one of the party may not come because of some other important matters or in some cases it happens as such the lawyer of a particular party may not come due to some issues and thus the court has to postpone the date which further delays the case.