Anik Saha, MBA 505

Name: Anik Saha
ID no.: 2021-1-95-040
Word count: 1487
Introduction: Dispute Resolution or alternative dispute resolution, appropriate dispute

resolution or ADR refer to a number of processes used to resolve a dispute between parties. ADR
is usually an alternative to litigation and can be used to resolve any type of dispute including
family, neighborhood, employment, business, housing, personal injury, securities, consumer, and
environmental dispute. Parties can on their own choose to resolve their dispute via ADR, or
dispute resolution might be prescribed by the court in early stages of litigation to give parties a
chance to resolve their dispute before going to trial. There are many types of dispute resolution
processes, but arbitration; mediation; and negotiation are the three most common types of
alternative dispute resolution. All ADR methods have common characteristics – i.e., enabling the
parties to find admissible solutions to their conflicts outside of traditional legal / court
proceedings, but are governed by different rules.
ADR has become an increasingly attractive route for dispute resolution as it maintains privacy,
which is ideal for people who may want to keep a dispute out of the public courts. Alternative
dispute resolution (ADR) is, in an insurance sense, a number of disparate processes used to
resolve disputes. Insured clients who are denied a claim are offered this path as an alternative to
expensive and time-consuming litigation. Alternative dispute resolution (ADR) offers to settle
disputes outside of the courtroom with the help of an impartial third party. Outcomes may be
non-binding and advisory in nature or enforceable without the right to appeal.
 How Alternative Dispute Resolution (ADR) Works

Alternative dispute resolution (ADR) is designed to settle disputes outside of the courtroom with
the help of an impartial third party. This path is generally accessible after efforts between the
client and the insurer to resolve any differences between themselves fails and reaches an
impasse. Many insurance policies contain mandatory alternative dispute resolution (ADR)
clauses, depending on the state. The two most common forms of alternative dispute resolution
(ADR) are:
 Negotiation
Negotiation is the preeminent mode of dispute resolution. While the two most known forms of
ADR are arbitration and mediation, negotiation is almost always attempted first to resolve a
dispute. Negotiation allows the parties to meet in order to settle a dispute. The main advantage of
this form of dispute settlement is that it allows the parties themselves to control the process and
the solution. Negotiation is much less formal than other types of ADRs and allows for a lot of
flexibility. This form of ADR is often overlooked because of how obvious it is. There is no
impartial third party in negotiation to assist the parties with their negotiation, so the parties must
work together to reach an agreement.
Negotiation has also been characterized as the “preeminent mode of dispute resolution”which is
hardly surprising given its presence in virtually all aspects of everyday life, whether at the
individual, institutional, national or global levels. Each negotiation is unique, differing from one
another in terms of subject matter, the number of participants and the process used.
Given the presence of negotiation in daily life, it is not surprising to find that negotiation can also
be applied within the context of other dispute resolution processes, such as mediation and
litigation settlement conferences.
 Mediation
Mediation, commonly also referred to as facilitation, leaves control of the outcome to the parties.
An impartial mediator helps the parties try to reach a mutually acceptable resolution to the
dispute.
The parties control the substance of the discussions and any agreement reached. A typical
session starts with each party telling their story. The mediator listens and helps them identify the
issues in the dispute, offering options for resolution and assisting them in crafting a settlement.
Mediation can take many forms, depending on the needs of the parties, such as:
 Face to face – parties directly communicate during the process,

 Shuttle – the mediator separates the parties and shuttles between each one with proposals
for settlement,
 Facilitative – the mediator helps the parties directly communicate with each other, or
 Evaluative – the mediator makes an assessment of the merit of the parties’ claims during
separate meetings and may propose terms of settlement.
In some cases, the courts will insist that the parties will need to explore the mediation route
before bringing a case in front of a judge. Furthermore, suppose a party refuses to seek
mediation. In that case, the courts will take a lower view of that party and may penalise them
with a costs order. A costs order is an instruction given by the court or tribunal regarding the
payment of the costs. With a costs order, the court may issue that one party will pay part or
all of the other party’s claim.
 Arbitration
Arbitration is one of the most emblematic and growing forms of ADR. Arbitration is more
formal than mediation and has a lot of similarities with traditional court proceedings, involving
limited discovery and simplified rules of evidence (ex. hearsay is usually admissible in
arbitration).
Different types of arbitration exist:
 National arbitration: for example American arbitration, French arbitration or German

arbitration which are all governed by different rules enacted by the institutions of each
country;
 International commercial arbitration: usually used to settle disputes that arise from
commercial contractual relations between buyers and sellers who are in two different
states;
 Investor-State arbitration: unilateral referral by private individual investors to an arbitral
tribunal against a host State of their investment.
An arbitrator is a neutral third party who the parties have appointed to resolve the dispute. The
arbitrator will be a specialist in the field where the dispute arises, for example, civil engineering.
Before an arbitrator makes a final decision, they will hear from both parties. However, in
arbitration, you may not simply choose to have one arbitrator, as you can choose to have a panel
of arbitrators presided over by a chairman.
 Litigation
Litigation is generally thought of as the process of resolving rights-based disputes through the
court system, from filing a law suit through arguments on legal motions, a discovery phase
involving formal exchange of information, courtroom trial and appeal. Litigation also
encompasses administrative or regulatory processes for establishing legal rights and resolving
disputes. Even if you do not plan to be a litigator, some familiarity with the litigation process
will help you advise clients on how best to avoid disputes regarding legal rights.
 Selecting Dispute Resolution Process for the described situation:

According to described situation, suddenly X-Factor cancelled remaining part of the order
without giving any explanation after receiving first consignment. They also did not pay the price
of the delivered products. When Blue Ocean Apparels wanted to know about such cancellation,
X-Factor said that due to current global recession they had to pull out of remaining part of the
contract. They further raised the issue of lower quality of the products that was already delivered.
They claimed that considering the quality of the delivered products the price should be lot less
than the price mentioned in the contract. Before placing the first consignment, an expert QC
team from X-Factor visited Blue Ocean Apparels’ factory and conducted a quality check of the
products. They reported that the products are up to the mark and approved for delivery. During
that period, the team also visited all the facilities of the industry to identify that Blue Ocean
Apparels complied international standard of employees’ safety protocol and environmental
protection guideline. The team was satisfied on the safety measures and environmental
protection scheme taken by the factory and reported positively in their inspection report. So,
suddenly they are claiming ordered products are not up to the mark and raised the issue to
environment and safety of the organization. As an advisor of Blue Ocean Appeal, I will go
“Negotiation” as an alternative dispute resolution process. Because as X-factor and Blue Ocean
Appeal are doing business for last 10 years and promised to buy increase the quantity of
products, so mutual negotiation would be best dispute resolution process to claim the money. We
know that, the main advantage of this form of dispute settlement is that it allows the parties
themselves to control the process and the solution. As there is possibility to have further business
opportunity in future, mutual negotiation would be best for this dispute solution. However,
Arbitration is also another an alternative dispute process by which I may suggest to my company
to apply this one if negotiation does not work. We know that, in arbitration an arbitrator is a
neutral third party who the parties have appointed to resolve the dispute. In arbitration, it is
usually used to settle disputes that arise from commercial contractual relations between buyers
and sellers who are in two different states. Here a middleman performs to settle the issue. So,
Arbitration would be 2nd best dispute resolution process for this case.
Above all, Negotiation is the best to keep good relationship with parties and resolution the
dispute rather than other processes.

Anik Saha, MBA 505

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Anik Saha, MBA 505

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Name: Anik Saha

Word count: 1487

Introduction: Dispute Resolution or alternative dispute resolution, appropriate dispute

 How Alternative Dispute Resolution (ADR) Works

 Face to face – parties directly communicate during the process,

 National arbitration: for example American arbitration, French arbitration or German

 Selecting Dispute Resolution Process for the described situation:

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