Copyright 2010 by South-Western/Cengage Learning Chapter 3 The Court System and Dispute Resolution.

Copyright 2010 by South-Western/Cengage Learning

Chapter 3 The Court System and

Dispute Resolution


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

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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


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


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


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


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


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


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


• 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


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


The Federal Court The Federal Court SystemSystem


State Court Systems State Court Systems


SOX and PrivilegeSOX and Privilege

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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


The Trial ProcessThe Trial Process


Steps in Civil LitigationSteps in Civil Litigation


Steps in Civil Litigation Steps in Civil Litigation (cont’d)(cont’d)

Copyright 2010 by South-Western/Cengage Learning Chapter 3 The Court System and Dispute Resolution.

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