Other forms include negotiation and mediation. It is up to management to determine which form of litigation is appropriate for the organization. “The paperwork that is filed with the court to initiate and respond to a lawsuit is referred to as the pleadings” (Cheeseman, 2010). The process of the pleadings is the complaints, the answer, the cross-complaint, and the reply. All lawsuits start with a complaint. The answer must be filed by the defendant. In some cases, the defendant can file a cross-complain, or countersuit, against the plaintiff. The plaintiff must then file a reply.
During discovery, both sides find the facts to defend their cases. When these steps are complete, the trial is ready to be heard. During the trial, juries are selected, opening statements are made, and both sides present their cases. In this case, the jury will pass down a verdict and the judge will decide the settlement upon accepting the verdict. The losing party will have chances to appeal if the findings are not to their liking. When dealing with traditional litigation, businesses and other organizations must take into consideration the amount of money needed to go to trial and any negative attention that may occur. The simplest form of alternative dispute resolution is engaging in negotiations between the parties to try to settle a dispute” (Cheeseman, 2010). Negotiation causes for both parties to try to reach a voluntary settlement. In arbitration, the parties choose someone not affiliated with either side to hear and decide the dispute. This person is usually a member of the American Arbitration Association (AAA). Arbitration clauses are often put into contracts used by labor unions and franchises. Mediation uses a third party to assist in reaching a settlement.
Unlike arbitration, the mediator does not make a decision. The mediator’s job is strictly to assist the parties in reaching a settlement. Alternative dispute resolution is more appropriate for a business if there is a chance the two parties may want to do business in the future. Alternative dispute resolution also saves the embarrassment of a public lawsuit and cuts on the cost of money spent by the companies. References Cheeseman, H. R. (2010). Business law: Legal environment, online commerce, business ethics, and international issues (7th ed. ). Upper Saddle River, NJ: Pearson Prentice Hall.