Lexington 859-554-4038 Louisville 502-589-7616 THIS IS AN ADVERTISEMENT PROVIDING LEGAL EXCELLENCE FOR OVER 60 YEARS IN KENTUCKY How do companies benefit from non-litigated settlements? On Behalf of Landrum & Shouse LLP | Dec 3, 2021 | Firm News There is a certain satisfaction in imagining the drama of a courtroom confrontation to resolve differences between two opposing factions. It is true that companies are often rivals, and a battle over competing claims, trade secret violations, or labor disputes seems to demand the winner-take-all approach that litigation offers. But business entities in Louisville, Lexington and throughout Kentucky rely far more often on the delicate balance of agreements that keep operations and profits flowing, so taking a trade partner, supplier, or shareholder to court could spell the end of that relationship. Fortunately, there are viable alternative dispute resolution (ADR) methods that present attractive alternatives to litigated disputes. ADR has become important especially in situations where all sides hope to preserve their relationships after the issues have been resolved. The advantages of ADR for business disputes One of the most important benefits of ADR from a business standpoint is its substantial savings relative to litigation. The discovery process is not only expensive, but also cumbersome and quite time-consuming. As time is money, the longer it takes to reach a settlement, the more costly it becomes. ADR processes eliminates most discovery and motions. ADR is effective even for highly charged and complex disputes, as it allows both sides to retain some control over negotiated outcomes in a private process out of public scrutiny. ADR methods can effectively resolve merger and acquisition claims, construction cases, labor disputes, and even international business claims that would otherwise fall into the jurisdiction of international courts. How business mediation works In a mediation, there is a great deal of flexibility, and the outcomes are usually nonbinding. The parties agree to meet outside the courtroom with a mutually agreed upon neutral mediator trained in ADR methods, whose role is to help manage discussions to facilitate conflict resolution. The mediator meets privately with each side to identify goals and priorities before bringing the parties together to discuss both their differences as well as a path forward in which each side will come away with some, if not all, of what they are seeking. As agreeing to compromise preserves business relationships, part of the outcome reflects this goal. Not only do all sides have greater control over the outcomes, but a mediation lasts weeks while litigation can go on for months or even years. Finally, there is tremendous savings in a mediation without attorney and court fees, and the details of even high-profile disputes will remain private. Facebook Twitter LinkedIn Search for: Recent Posts How do companies benefit from non-litigated settlements? Fight between UnitedHealthcare and Prisma Health is over What should I include in my employee handbook? Landrum & Shouse Honored as 2022 Best Lawyers® FMCSA tightens rules for drivers with drug, alcohol raps Categories Best Lawyers in America Business and Commercial Litigation Employment Law For Employees Employment Law For Employers Estate Administration Estate Planning Estate Valuation Firm News Labor Law Legal News Mediation & Arbitration Trucking Accident Defense White Collar Criminal Defense Workers’ Compensation Archives Archives Select Month December 2021 (1) November 2021 (4) October 2021 (3) September 2021 (3) August 2021 (1) July 2021 (4) June 2021 (2) May 2021 (3) April 2021 (3) March 2021 (3) February 2021 (2) January 2021 (3) December 2020 (7) November 2020 (2) October 2020 (2) September 2020 (3) August 2020 (7) July 2020 (3) June 2020 (4) May 2020 (1) April 2020 (2) March 2020 (3) February 2020 (2) January 2020 (3) December 2019 (5) November 2019 (3) October 2019 (2) September 2019 (2) August 2019 (7) July 2019 (2) June 2019 (2) May 2019 (3) April 2019 (3) March 2019 (2) February 2019 (2) January 2019 (3) December 2018 (2) November 2018 (3) October 2018 (2) September 2018 (2) August 2018 (4) July 2018 (2) June 2018 (3) May 2018 (2) April 2018 (2) March 2018 (3) February 2018 (4) January 2018 (2) RSS Feed Subscribe To This Blog’s Feed CONTACT OUR FIRM 24/7 Providing legal excellence for over 60 years in Kentucky Facebook Twitter LinkedIn REVIEW THE FIRM