Copyright 2010 by South-Western/Cengage Learning Chapter 3 The Court System and Dispute Resolution.
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Copyright 2010 by South-Western/Cengage Learning
Chapter 3 The Court System and
Dispute Resolution
Copyright 2010 by South-Western/Cengage Learning
Business DisputesBusiness Disputes
• Hilton and Starwood Resorts
• Wal-Mart and a customer injured by a falling reindeer
• Sometimes you just need to know where you stand – Brighton Collectibles
1-2
Copyright 2010 by South-Western/Cengage Learning3-3
Types of ADRTypes of ADR
• Arbitration—Oldest Form of ADR– Parties submit grievances and
evidence to a third party expert in an informal setting
– American Arbitration Association provides many arbitrators and rules
Copyright 2010 by South-Western/Cengage Learning3-4
Types of ADRTypes of ADR• Mediation
– Parties use a go-between to negotiate and communicate
• Used in international transactions• Mediator can offer suggestions for resolution• Not binding
• Medarb– Recent creation in which arbitrator first
attempt to mediate settlement– If unsuccessfully the case goes to arbitration
Copyright 2010 by South-Western/Cengage Learning3-5
Types of ADRTypes of ADR
• Minitrial– Small-scale trial where parties present
case to a judge with experience in the field or to a neutral advisor• Advisor or judge makes decision• Can motivate parties to resolve differences
even if the results are not binding
Copyright 2010 by South-Western/Cengage Learning3-6
Types of ADRTypes of ADR• Rent-a-Judge
– Trial held in commercial as opposed to a public court
• Pay fees for courtroom and judge
• Example: “The People’s Court” TV show
• Summary Jury Trials– Gives parties an idea about jury’s perceptions– Used after discovery is complete
Copyright 2010 by South-Western/Cengage Learning3-7
Types of ADRTypes of ADR• Early Neutral Evaluation
– Consultant or volunteer gives parties an assessment of the position
• Generally used prior to discovery• Saves expenses if parties settle following the
evaluation
• Peer Review– Review of Management’s action against
employee by a group of peer – employees– Reduces litigation cost
Copyright 2010 by South-Western/Cengage Learning3-8
Litigation vs. ADRLitigation vs. ADR
Expensive Less expensive (some changes here)
Strict procedures and timing
Flexible
Judge and juries unknown
Parties select
Judicial enforcement Enforcement by good faith
Copyright 2010 by South-Western/Cengage Learning3-9
Litigation vs. ADRLitigation vs. ADRTechnical discovery rules
Open lines of communication
Judicial constraints of precedent
Parties can agree to virtually anything
Remedies limited Creative remedies
Docket backlog Parties set time line
Public proceeding Private
Control by lawyers Control by parties
Copyright 2010 by South-Western/Cengage Learning3-10
• Trial Courts– Place where case begins– Jury hears cases and decides disputed issues of fact– Single judge presides over case
• Appellate Courts– Review actions of trial court– Usually have published opinions for uniformity
and consistency– No trials held - panel of judges hears case
Types of CourtsTypes of Courts
Copyright 2010 by South-Western/Cengage Learning3-11
Consider 3.1Consider 3.1
• The GPA Computation Rule– A course in which a grade of “C” or
better has been earned may not be repeated. The second entry will not be counted in earned hours or grade index for graduation
Copyright 2010 by South-Western/Cengage Learning3-12
The Federal Court The Federal Court SystemSystem
Copyright 2010 by South-Western/Cengage Learning3-13
State Court Systems State Court Systems
Copyright 2010 by South-Western/Cengage Learning
SOX and PrivilegeSOX and Privilege
3-14
1. Lawyers for corporation represent corporation, not employees
2. Lawyers for corporation must report fraud to CEO
3. If no action, must notify board
4. If no action, must resign
Copyright 2010 by South-Western/Cengage Learning3-43
The Trial ProcessThe Trial Process
Copyright 2010 by South-Western/Cengage Learning3-16
Steps in Civil LitigationSteps in Civil Litigation
Copyright 2010 by South-Western/Cengage Learning3-17
Steps in Civil Litigation Steps in Civil Litigation (cont’d)(cont’d)
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