Sunday, December 2, 2012

Dispute Resolution Systems


Introduction

Dispute Resolution Systems (DRS) is a general term used to identify means of resolving disputes out of court, such as by mediation or arbitration. DRS programs are becoming increasingly important today as parties and the court system alike are now trying to find DRS programs that will take them out of the traditional legal system and solve their disputes in a quick and cost efficient manner. DRS reflects a serious effort to design workable and fair alternatives to traditional civil litigation.

Types of Dispute Resolution System

Dispute resolution processes fall into two major types:

1. Adjudicative processes, such as litigation or arbitration, in which a judge, jury or arbitrator determines the outcome. 2. Consensual processes, such as collaborative law, mediation, conciliation, or negotiation, in which the parties attempt to reach agreement.

Not all disputes, even those in which skilled intervention occurs, end in resolution. Such intractable disputes form a special area in dispute resolution studies.

Dispute Resolution in International Trade: Negotiation, Mediation, Arbitration and Legal Action

There are several types of DRS programs. The more familiar are:

1. Negotiation - This is the direct bargaining between two parties to a dispute where they attempt to resolve the dispute without the intervention of others. Many real estate brokers utilize this form of DRS without realizing it. An example may be when a disgruntled buyer calls after a walk through and finds that the seller broke the mailbox when he was moving out of the home. A real estate broker may offer to purchase a new mailbox in order to resolve the conflict. This resolution has been accomplished using the DRS program of negotiation.

2. Mediation - In mediation, a neutral third party assists the disputants in negotiating a mutually acceptable settlement. Mediators do not render decisions but help to facilitate the parties to the dispute to come to their own agreement by clarifying issues, utilizing persuasion and other conflict resolution strategies. Although there is no guarantee that the dispute will be resolved, surveys reveal that settlements are reached over 80% of the time.

3. Arbitration - Arbitration is probably the best known DRS method. In arbitration agreements, parties agree to submit existing or future disputes to a neutral third party, an arbitrator, who will decide how the dispute will be resolved. In binding arbitration, that decision is a final resolution of the dispute. In non-binding arbitration, the parties elect whether to settle with the arbitrator's decision or to continue on to litigation.

Benefits of DRS Program

• Faster than litigation. • Less expensive than litigation. • Discourages litigation of frivolous claims. • In mediation, parties do not forfeit their legal rights to arbitrate or litigate the dispute if mediation is unsuccessful. • Parties actively participate in the process and control outcomes. • Process contributes to long-term goodwill between brokers and their clients and customers. • Provides a service which brokers and salespeople can offer to their clients and customers. • Improves image of NAR, associations and members because they have taken the initiative to find and provide alternatives to litigation.

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