ADR for your next best business deal

Some mishaps in business? Debate with a business partner? You decide whether you consider it as a conflict or an opportunity for a new business deal. 


In 1992 Southwest Airlines and Stevens Aviation - instead of spending hundreds of thousands of dollars on legal fees and letting the courts decide the matter - has settled a dispute about the slogan "Plane Smart" with an arm wrestling match. The media loved the story and the result was a significant rise in profits for both companies. Besides it was a great way to show the personalities of the companies.

Any problem in your business is just a call for you being creative. Alternative dispute resolution is for finding the best possible business deal in any situation. I assist you in this and I check if the outcome is achievable from a legal perspective too. I beleive that today’s lawyers need to go beyond traditional frameworks. Out-of-court litigation and mediation are an important part of creative lawyering (Albert Fiadjoe).

These days alternative dispute resolution (ADR) is inevitable and becoming more popular. It's fast - usually an agreement is reached between the parties within 90 days. Given the workload of the courts, this is one of the biggest benefits, but cost-effectiveness is also an important factor. 

In some cases, litigation is not really an alternative, as the parties are closely linked, so it is important to reach an agreement and maintain a future relationship. Or both of them are reluctant to expose the details of the conflict in court. In such situations, the AVR offers a more effective way to resolve conflicts: either through direct negotiation between the parties (conciliation), or through the involvement of a third party (mediation, mediation), or through a binding decision by a third party involved in the dispute (arbitration). The nature of the dispute and the relationship between the parties decide which method is most appropriate. 

Advantages of mediation:

  • In business the parties usually have close ties in spite of the dispute that arose between them, so the settlement of the dispute is not the only objective - the relationship also needs to be maintained for the future. The mediation procedure makes this possible, unlike a legal proceeding where one of the parties will necessarily lose. As a result, the communication and the business relationship are restored and continue in the future.
  • The time factor (it does matter when the company receives its money) and efficiency (you may win but the other party doesn’t pay) are extremely important.
  • Confidential information doesn’t have to be shared with anyone but a neutral, impartial mediator who is bound by the obligation of confidentiality.

In addition to mediation, the following options are available in Hungary today: arbitration in economic matters, conciliation bodies may be sought primarily in consumer protection cases, and the procedure of the Performance Certification Expert Body may be requested for the settlement of construction disputes.

Arbitration tribunals are private tribunals where the parties concerned agree to entrust the settlement of their dispute to an arbitral tribunal designated by the parties themselves. A lawyer may also be appointed as an arbitrator.

If you are interested in alternative dispute resolution, you can contact me here >>


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