Alternative Dispute Resolution

Alternative Dispute Resolution

Alternative Dispute Resolution

Inevitably disputes arise between business people including in the construction industry. These disputes have to be resolved using one of the many dispute resolution methods. The methods include Alternative Dispute Resolution – ADR (Avoidance, Negotiations, Mediation, Arbitration) on the one part and/ or Litigation on the other (Please refer to lesson 2 for details). Either of the two main methods has advantages and disadvantages. Contrary to popular belief, in America, majority of disputes are resolved through Alternative dispute resolution methods listed above as opposed to Litigation.
AB & C Inc., has a dispute with the project owner Xavier’s and want to sue Xavier for the non-payment of $ 120,000 (one hundred and twenty thousand dollars) which Xavier denies owing.

Required: discuss why AB & C Inc. needs to use Alternative Dispute Resolution especially Arbitration over Litigation in trying to resolve the dispute

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