Chapter 4 Settling Disputes
Settling Disputes How do we settle disputes in our society? What if we had no procedure for peacefully handing conflict?
Settling Disputes NEGOTIATION People involved in a dispute discuss their problems and try to reach an acceptable solution Can be an informal process Attorneys use negotiations to reach settlements even when a lawsuit has been filed
Settling Disputes NEGOTIATIONS Negotiations often result in settlements If you settle, you cannot also continue with a lawsuit Client consent is required
Settling Disputes NEGOTIATIONS Neither sides gets 100% of what they want – must give and take WHY settle? Save time, money, and uncertainty of a trial
Settling Disputes ARBITRATION The parties to a dispute have one or more persons listen to their argument and make a decision for them
Settling Disputes ARBITRATION Arbitrator is like a judge Proceedings can be LIKE a trial, but less formal Many arbitrations are BINDING – the parties MUST abide by the decision
Settling Disputes ARBITRATION When is arbitration used? Included in many contracts Parties MUST go to arbitration instead of filing a lawsuit Common in labor contracts
Settling Disputes MEDIATION A third party helps disputing parties talk about their problem and settle their differences
Settling Disputes MEDIATION The mediator does NOT make the decision The mediator helps the parties to come to a decision
Settling Disputes MEDIATION The mediator must be neutral! Voluntary – may not result in a decision
Settling Disputes Which method? A landlord refuses to make repairs to a rental unit because he believes that the tenant caused the damage. The tenant denies causing the damage.
Settling Disputes Which method? A fast food restaurant and an employee disagree over the wages and conditions of employment.
Settling Disputes Which method? The IRS sends you a letter (not a phone call – that’s a scam!) claiming that you owe $2,000 in taxes, and you disagree.
Settling Disputes Which method? You are badly injured in a car accident and you hire a lawyer and file a lawsuit against the person that hit you, but you would like to avoid a long and costly trial.