Chapter 3 Notes
Chapter 3 Notes LGS 200
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This 3 page Class Notes was uploaded by Matt Owens on Tuesday February 2, 2016. The Class Notes belongs to LGS 200 at University of Alabama - Tuscaloosa taught by Charlye S. Adams in Summer 2015. Since its upload, it has received 17 views. For similar materials see Legal Environment of Buisness in General at University of Alabama - Tuscaloosa.
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Date Created: 02/02/16
Matt Owens 1/21/16 LGS 200 Chapter 3 Notes Alternative Dispute Resolution Trials o Means of Dispute Resolution An be expensive Lengthy to resolve “Alternative Dispute Resolution” (ADR) o Procedure for resolving disputes other than the traditional judicial process Relatively inexpensive, quick and leave more control with the parties Most common alternative dispute resolution methods: o Negotiation o Mediation o Arbitration Negotiation and Mediation Negotiation o Informal discussion by parties, with or without attorneys, with the goal of coming to a “meeting of the minds” in resolution Mediation o Involves a neutral 3 party (mediator) o Mediator talks face-to-face with parties to determine “common ground” o Advantages: Brings parties together to determine a mutually satisfactory resolution Reduces/eliminates hard feelings or bitterness Mediator is selected by parties Few rules Parties control results (win-win) o Disadvantages: Mediator fees No sanctions for failure to mediate in “good faith” No deadlines Arbitration Arbitration o More formal ADR rd Neutral 3 party renders a legally-binding decision Usually the arbitrator is an expert or well-respected government official o The Federal Arbitration Act Does not establish an arbitration procedure; must be agreed upon by the parties FAA covers any arbitration clause in an interstate commerce o State Arbitration Statutes o Arbitration Statutes Federal Arbitration Act (FAA) v. State Arbitration Statutes If you’ve agreed to an arbitration provision, it will be enforced. One could have negotiated out of it during the drafting of the contract o Federal trumps the state law Case 3.1 Cleveland Construction, Inc. (2012). FAA preempted the Texas statute which required a party to submit to arbitration outside Texas o Cleveland entered contract with Levco, within contract was an arbitration provision o Levco filed in Texas State Court Cleveland made motion to dismiss because of arbitration agreement in Ohio Texas state law: Arbitration outside TX with construction is null/void o The Arbitration Process Submission Hearing Arbitrator’s Decision o Enforcement of Agreements to Submit to Arbitration Courts are not involved in arbitration unless an arbitration clause in a contract needs enforcement Issue of Arbitrability: party compels arbitration and court resolves the issue of whether arbitration is required Case 3.2 NCR Corp. v. Korala Associates, Ltd. (2008) Arbitration in the Employment Context Enforceable Mandatory Arbitration and Class Action Waivers in Credit- Card Contracts Enforceable Consumer Arbitration Agreements have been source of litigation Case 3.3 Lhotka v. Geographic Expeditions, Inc. (2010) o Was Geo-Ex’s arbitration clause unfair? Lhotka wanted to climb Mt. Kilimanjaro guided by Geographic Expeditions Wavier & Release Arbitration Damages = refunds of purchase price ($16,500) no more Wrongful death Negligence Court decided the clause was “grossly unjust” - unfair o Setting Aside and Arbitration Award Court does not look at the merits of the decision. The only issue is whether the award is valid Facts, Findings, and Legal Conclusions Public Policy and Illegality o Disadvantages Can be expensive Results may be unpredictable because arbitrators do not have to follow precedent or rules of procedure or evidence Arbitrators do not have to issues written opinions Generally, no discovery available Integration of ADR and Formal Court Procedures o States now require parties to attempt to settle with ADR o Court-Annexed Arbitration A Fundamental Difference Role of the Arbitrator Which Rules Apply Waiver o Court-Related Mediation Today, more courts offer or require mediation than arbitration Advantages are 75% lower cost, and quick resolution High ‘customer satisfaction’ with mediation ADR Forums and Services o Nonprofit organizations: American Arbitration Association Better Business Bureau
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