Chapter 4 Settling Legal Disputes: Alternative Dispute Resolution and Civil Lawsuits

Alternative Dispute Resolution Conciliation Mediation Arbitration

Advantages of ADR Faster, less stressful, and less expensive than litigation Neutral party serves as judge and jury Privacy of proceedings Does not establish precedents as do court cases

Disadvantages of ADR Contrary to our established jury system and the right to trial Conducted by people other than legal professionals Often favors one party Settlements can be challenged in court Can be entered into unwittingly

History of ADR Recognized in 1925 as the Federal Arbitration Act Wilko v. Swan in 1953 Southland v. Keating in 1983 Mitsubishi Motors v. Soler Chrysler-Plymouth in 1985 Now, public opinion favors ADR

SEC Rules Regarding Arbitration Introductory language explains effects of arbitration Disclosures are conspicuous in the agreement Agreements cannot deprive customers of their other legal remedies

The Role of Attorneys To raise persuasive arguments for their clients To potentially speed the process For more information about the American Bar Association, its members, and the relationship toward ADR, go http://www.abanet.org

Attorney Fees Fixed or contingent in nature Vary widely, depending upon these factors: Geographical location Type of fee Represent high overhead expenses associated with running a law practice

Attorneys and the Middle Class Judicare provides legal services for all people Pro se litigants are people who act as their own attorney Small claims courts have simplified procedures for collecting small amounts of money

Who May Sue? Standing Class actions Controls the amount of litigation by letting only injured parties sue Usually occurs in lawsuits involving public law Important in environmental lawsuits Class actions

Steps in a Civil Lawsuit Cause of action Complaint filed Defendant served Defendant answers Pretrial hearing Discovery Motions Trial, verdict, and judgment Res judicata and appeals

Factors in Collecting Judgment Judgment creditor and judgment debtor Judgment proof or judgment debtor’s property Exempt property Exemption waivers Writs of execution and garnishment

Factors in Collecting Judgment Prejudgment attachment and garnishment Consumer Protection Act of 1968 Bankruptcy Transfer of ownership of property Fraudulent transfers

Recap – Terms to Know Alternative dispute resolution Pro se litigants Standing Cause of action Class actions Jurisdiction Complaint and answer Pleadings, discoveries, and motions Res judicata and appeals Judgment, waiver, garnishment