Question

Your company’s Managing Director insists that litigation is the best means of resolving commercial disputes because Alternative Dispute Resolution (ADR) “cannot get pure and true justice.” Make a presentation to the Managing Director discussing litigation and ADR.

Answer 1

ANS-

Presentation to Manager with the advantages and disadvantages of Litigation and Alternative Dispute Resolution (ADR).

Litigation-

Advantages of Litigation-

• The solution has legal obligation that gives an incentive for either of the party to not to backtrack from its commitment.
• Parties are compelled to comply with judgments.
• Potential for a predictable outcome.

disadvantages of Litigation-

• Longer time frame-Sometimes, depending on the complexity of the issues, cases can take up to several years to be decided by court.
• Costly- The litigation process can undoubtedly become quite costly with legal fees and other costs associated with going to trial.
• Damaging relationship-One of the downsides of taking a case to trial is that it is almost always damaging to the relationship between the two parties.
• A risk of taking a case to trial is the possibility that it will attract public attention as most court documents are available publicly. It may not be in your or your company’s best interest to take a case to court if you are uncomfortable with the matter being publicly accessible.

Alternative Dispute Resolution (ADR).

Advantages of Alternative Dispute Resolution (ADR)-

• Saves time and money.
• Parties can mutually come up with a creative solution.
• Both the parties can co-exist peacefully without impacting their relationship with each other.

disadvantages of Alternative Dispute Resolution (ADR)-

• The solution has no legal obligation that gives an incentive for either of the party to backtrack from its commitment.