If no rules are specified in the contract, California law supplies rules that will apply by default. Because of the power and flexibility of arbitration clauses, failing to include one in a contract or choosing one poorly can actually determine whether a business will survive a major dispute. As a result, no business should ever sign a contract or enter into a significant transaction or relationship without first considering what kind of arbitration clause or agreement could reduce its exposure in the event of a later lawsuit. The Three Most Common Litigation Boondoggles and How to Avoid Them. If you are trying to control the cost of litigation, it is helpful to distinguish between strategies for reduction of costs and boondoggles.
Strategies involve choices requiring thought and the weighing of risks against savings.
Therefore, after considering them, you may decide that the a particular economy is not worth the increased risk. Boondoggles are work that usually has insignificant value compared to the expense. You always want to avoid them. The three most common litigation boondoggles are wasteful staffing practices, the digesting of deposition transcripts, and the failure to attempt to settle. Wasteful staffing practices consist of excessive staffing, changes in staffing, and excessive delegation to junior lawyers.