Articles Posted in Commerical Litigation

ADR is short for “alternative dispute resolution,” which is a term used to describe various methods of resolving disputes without the use of litigation. ADR takes many forms, and these can each have different implications for you, your company, and your relationships with other parties.

As such, the exact meaning it has for you could vary with your situation. It could mean the preservation of a business relationship or the quick resolution of a complex dispute, for instance.

Definition and Types of ADR

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Ideally, fault in an accident would be clear cut, and those responsible would pay for it. However, it’s often more complex than that. Sometimes, the injured party contributed in some way to their own injury, and even if they didn’t, those who are actually responsible may claim they did.

When someone is injured in an accident that was partially their own fault, Illinois law applies modified comparative negligence rules. These could reduce the amount received for the injury, and in some cases, it could even preclude someone from recovering damages at all.

Illinois Comparative Negligence Law

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Mediation can be a relatively fast and cost-effective way to resolve a dispute, and it is typically the best solution when it comes to preserving business relationships. However, in order to be effective, you need to choose the right mediator. There are many factors to consider in this process, and we’ll discuss a few of those here.

Role of a Mediator

Mediation stands out from other forms of alternative dispute resolution because it is ultimately the disputing parties who sort out the problem, not the mediator. The mediator is simply a facilitator who assists the discussion and offers direction to help those involved reach an agreement.

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Alternative dispute resolution (or ADR) has become an increasingly common way to solve differences between two parties. Given the costs and inconvenience of litigation, it’s easy to see why—ADR is often much faster and far less expensive than going to court.

The two main types of ADR are arbitration and mediation. While these two terms are often used in the same sentence, they are actually very distinct methods of dispute resolution.

Difference Between Mediation and Arbitration

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One of the crucial steps in resolving a dispute through arbitration is choosing an arbitrator. In the case of a sole arbitrator, both disputing parties should agree on who will hear their case. With tribunals, both parties choose their own representative, and those two choose a chairman.

In either instance, choosing the right person is absolutely vital to the success of the hearings. A poor decision could result in a process that is far more drawn out than it should be, or it may undermine the results, making them harder to enforce. In order to ensure a good outcome, you must make a well-informed decision.

Power of Word of Mouth

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How Does Illinois’s Collateral Source Rule Work?

If you have been injured in an accident due to someone else’s negligent actions, your own insurance company will often handle your medical expenses before you press charges. In many states, this could be brought against you in the course of a lawsuit. The defendant (i.e. those who were at fault) can try to use the fact that you’d already received compensation to reduce or eliminate their responsibility to pay damages.

Illinois, however, has a collateral source rule that prevents this from happening. In essence, the rule dictates that the defendant cannot submit evidence that you received compensation from a collateral source (such as your insurance company). There are a few reasons why this is beneficial to you, but it can also result in some challenges in recovering damages as well.

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Most people are aware of their right to recover damages in the event of an accident. If another party is at fault for your injury, you are generally able to recover monetary compensation for the resulting costs of the accident, including medical expenses, lost wages, and pain and suffering. The types of damages you may be awarded are grouped into three categories—economic, noneconomic, and punitive.

These are all calculated in their own ways and often require different forms of evidence, so it’s important to understand the differences between them.

Economic Damages

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How to Begin the Mediation Process

Mediation is far more efficient than litigation, and it may be more effective than arbitration in certain circumstances. The process involves a neutral third party who facilitates discussion between two clashing parties, so the results are more likely to favor both sides of the dispute. While the process is typically less formal than other forms of ADR, it does require some advance preparation.

Overcoming Deterrents

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Ultimately, people are the main force that drives a business. Your shareholders and executives have their roles in decision making, managers and supervisors handle floor-level administration, and employees are ultimately the ones who make everything go. However, as important as employees are to a company, it can sometimes be a risk for a business to hire people on to their team.

For this reason, it’s important for employers to be well aware of what liabilities they might face and how to mitigate them. It also helps for employees to be aware of these risks as well going in—in some cases, an employee’s conduct may fall upon their employer, but in other cases it may not.

Vicarious Liability

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Recent news shows the importance of including an arbitration clause in your contracts. Uber was recently confronted with a lawsuit by a user who claimed they sent an unsolicited text to his phone. This could be considered a violation of the Telephone Consumer Protection Act (TCPA), but Uber successfully drove the lawsuit into arbitration.

Impact of an Arbitration Clause

The main factor that allowed Uber to move the dispute into arbitration was the fact that they’d included an arbitration clause in their Terms of Use contract. Their Terms of Use were easy to access, didn’t require any scrolling, and were displayed in an easy-to-read font. As such, there was no reason why the plaintiff shouldn’t have known about their arbitration clause, which required all disputes to be handled through arbitration rather than in court.

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