Traditional litigation occurs when the offended person reports the offense to a court. In this phenomenon, only the accused and the plaintiff appear in court where the court or jury makes a verdict in accordance to the evidence presented by the parties (Kubba, 2012). Usually, the court evaluates the rules that apply to the case and makes a final decision. Traditional litigation depends on the ability of the parties to provide evidence (Molot, 2009).
This means that if a person commits offense and the complainant fails to provide adequate evidence, the court cannot make a decision or punish the accused. A pretrial allows recognition of persons participating in the case and the conflicting issue. According to Kubba (2012) “A trial occurs when the court selects a jury and the parties and their attorneys begin by giving opening statements” (p. 413).
The trial allows the parties to discover the weak points of their evidence and build strong evidence when the court process proceeds. The costs and duration involved when corporations employ traditional litigation causes calls for better methods for resolving disputes. The process is expensive plus time consuming and any organization using it poses risks to its entire operations.
Most corporations prefer Alternative dispute resolution (ADR) because it reduces expenditure plus risks (Cheeseman, 2010). Unlike traditional litigation, methods of resolution such as negotiation are preferable because they can safeguard information of the organization. This helps maintain the image of the organization and thus; ensures proper customer relationship. In case of mediation, the mediator is to make neutral decisions in order to resolve conflicts in an amicable manner (Molot, 2009).
What are the risks that businesses and other organizations encounter when dealing with traditional litigation?
Organizations found in disputes are susceptible to various business risks because of the situation of the court system. Liquidity may be inevitable where a corporation utilizes most of its resources tackling cases in court (Cheeseman, 2010). Managers should ensure incorporation of Alternative dispute resolutions (ADRs) in order to reduce these risks. Tradition litigation results to time drags due to the nature of the court system.
The time wasted affects the wellbeing and operations of the business (Molot, 2009). This results to the inability for the organization to sustain itself by funding it operation and remunerating its employees. Organization image is a fundamental aspect to a successful organization.
Use of traditional means for dispute settling may alter its image. This occurs when the public commences to view the organization in a negative way. This perception towards an organization is deleterious and affects the welfare of an organization even to the extent of bankruptcy (Cheeseman, 2010).
Traditional litigation is expensive; any organization practicing it risks the courts charges that may drag it to economic failure. Employing traditional litigation in an organization does not yield proper results due to uncertainty. It is not easy to predict the judgment of the court or jury in matters that concern user protection (Molot, 2009).
Where might ADR be a more appropriate measure in order for business managers to reduce those risks?
Reduction of risks involved in traditional litigation is possible if organizations incorporate Alternative dispute resolution. Cases that concern consumer rights can affect business operations if settled in court. If managers approach such issues through negotiations or mediation, organizations can preserve their image (Cheeseman, 2010).
However, the organization should ensure quality of product plus service in order to avoid repetition of the error. Mediation is likely to work where disputes exist between organizations. Here, both organizations can save costs and delays associated with trials and pretrial processes (Molot, 2009).
References
Cheeseman, H. R. (2010). Business law: Legal environment, online commerce, business ethics, and international issues. Upper Saddle River, N.J: Pearson Prentice Hall.
Kubba, S. (2012). Handbook of green building design and construction: Leed, Breeam, and Green Globes. Waltham, MA: Butterworth-Heinemann.
Molot, J. T. (2009). A Market in Litigation Risk. University Of Chicago Law Review, 76(1), 367-439.