Case Study 1: Saving the Business Relationship through Mediation:
In Italy, a company called Nuovo Pignone (NP), which manufactured heavy equipment, was being sued by an insurance company to recoup a claim they paid out to one NP’s customers. The customer had lost business when some of the equipment it had purchased from NP failed in a contract job. NP suggested they use a mediator. Both the insurance company and the customer agreed. They called in a retired Italian judge to help with mediation. The judge focused on settlement as his objective in the dispute.
By taking this approach, the sides were able to more realistically gage each other’s strengths and weaknesses. The customer was persuaded to put pressure on the insurance company as he was still a valued customer of both sides despite his dispute with NP. As a result, the insurance company was persuaded to settle for a reasonable and acceptable amount of money. In the end, the mediator’s efforts satisfied each side. The sides were able to successfully maintain their business relationship. This outcome benefitted both parties and would not have been possible with more adversarial methods of conflict resolution.
Case Study 2: arbitration in family law to avoid stressful litigation:
Angela and David, who were in a five-year relationship and have ten-year-old twins, Guy and Gabriel, have amicably co-parented since their split when the boys were three. While Angela has built a successful career at a major City law firm, David has established a modest criminal law practice. Angela is now in a new relationship and desires to send the twins to a private boarding school, as she believes it would benefit them due to their busy parents, and she is willing to cover the full fees, hoping David will contribute half. Conversely, David, who opposes private schooling and believes in the value of state education, fears his marginalization in the boys’ lives. After unsuccessful mediation, both parents are anxious to resolve their differences before the upcoming academic year and the twins’ entrance exam for private school. Following legal advice indicating that court proceedings would take too long, they have opted for arbitration, recognizing its benefits: a faster and more convenient process, privacy, the ability to select an experienced arbitrator, and a focus on the children’s welfare. Whatever the outcome will be, this will be beneficial for both the parties and their children.
Key Takeaways from Successful ADR Cases:
By resorting to mediation, arbitration, and other ADR methods, parties typically maintain better working relationships while preserving their financial and mental well-being. The reduced financial burden allows them to reinvest more time and capital in their jobs or businesses leading to a better lifestyle and future prospects. Business relationships are often preserved during ADR processes, which is usually not the case after litigation, enabling both parties to continue doing business with each other after the settlement. Similarly, families can avoid the distressing nature of litigation, which affects both the children and the parents, leading to more expeditious and amicable resolutions.
