HOW TO IMPLEMENT AN EFFECTIVE DISPUTE RESOLUTION STRATEGY
Corporate disputes can arise with a variety of stakeholders, from clients and contractors to suppliers and senior staff. For businesses embroiled in a corporate dispute, it is crucial to use the most appropriate form of resolution to reduce the impact of the dispute on financial exposure, resources and reputational damage, as well as internal morale.
The first step, before any dispute arises, is to develop an early case system and escalation procedure. This starts with taking an audit of the existing approach and previous successes or failures, if any, and assessing what training is currently in place at all levels, plus internal resources able to prioritise disputes.
This could involve multiple teams from marketing to client services, but will filter upward to risk and in-house counsel and in some instances external legal advisers, who can recommend proportionate and appropriate action for a dispute.
As part of this activity, companies need to establish their position on disputes. Do they include negotiation clauses in contracts whereby parties agree to resolve issues in good faith? Do you they include arbitration clauses in contracts? Where will the dispute be dealt with – England, Wales or overseas?
For each dispute the company needs to agree at the outset how much time, resource and capital it is willing to commit and ensure that it collects documents and evidence early in the matter so it has everything regarding the issue to hand – this will be increasingly important depending on the severity and potential damage of the dispute.
Apr-Jun 2022 issue
Shakespeare Martineau