Business Law Case Analysis

 A typical civil personal injury claim will involve several steps which are:

Meeting with a lawyer to understand the nature of the claim, preparing the relevant pleadings to be used in a lawsuit, fact-finding where parties exchange facts and documents to be relied on in court, conducting a pretrial motion which helps in resolving critical questions that arise and finally, the settlement stage in case parties prefer not going to court.

          If no settlement is achieved, the case proceeds to trial where both the parties present their argument. Finally, the court decides based on the evidence before it.

          Ordinarily, parties consider speed and cost in the course of the dispute resolution. Alternative Dispute Resolution(ADR) is known to be both fast and cost-effective (Wrbka, 2014). ADR entails the settlement of disputes without proceeding to litigation. There are three main ADR methods namely Mediation, Negotiation, and Arbitration (Marquis & Esplugues Mota, 2015).  ADR is preferred when parties want their disputes to be resolved expeditiously and cost-effectively. Court proceedings are known to be expensive and time-consuming.

          Arbitration involves an agreement between the parties. The agreement includes an arbitration clause that requires them to resolve their disputes through arbitration in case they occur. The agreements bind both parties and bar them from resorting to any other form of dispute resolution. The process is facilitated by a neutral arbitrator who is chosen by both parties.

           Mediation, on the other hand, involves a neutral party called a mediator. Parties voluntarily resolve to this form of ADR. There is no fault finding, and the process aims at offering alternatives (Wolf, 2000). Parties exchange information before the mediator and get a chance to address the mediator alone. The information gathered in the process is used to offer an alternative solution. The parties share the cost incurred in meditation.

Negotiation is another form of ADR but it is much different from the rest. It does not use a neutral party. Two parties advancing different interests sit down to negotiate.

          In the present case, Pete would be required to adduce compelling evidence for the blame to rest on the manufacturer.  Should the manufacturer prove that the AVT was not defective as claimed, the accident may be attributed to Pete’s negligent act of driving at an excessive speed around a corner.  Therefore, it would not be advisable for Pete to opt for litigation.ADR is a speedy and cheaper method of dispute resolution.

          Pete suffered injuries as a result of an accident that he alleges occurred due to a faulty All-Terrain Vehicle (ATV) that he had purchased from a manufacturer. He incurred a loss of $75000 due to medical expenses. The manufacturer refutes the claim and maintains that the accident was caused by Pete’s act of driving at an excessive speed while approaching a corner.

          Based on the above, ADR is preferable. As observed above, the court may probably find Pete's negligence and find no fault on the part of the manufacturer. On the other hand, the court may find the manufacturer at fault, though, there are chances that the manufacturer would involve the defense of contributory negligence on the part of Pete.  If the case is to be decided as pictured above, the decision may not be favorable for him.

          Consequently, the use of mediation as opposed to any other form of ADR is recommended. Even in the absence of compelling evidence to support his claim, Pete would not incur a lot of costs during the meditation process.  In the circumstances, the use of arbitration is not recommended. Arbitration is similar to litigation, and the only distinction is that in arbitration process is less formal and hence expeditious. Other aspects such as calling of evidence and admitting testimonies are present in arbitration. Therefore, a decision will be made against one of the parties based on the evidence tendered before the arbitrator. The arbitrator is a neutral party who plays the role of a judge (Goldberg, Brett & Brenneur, 2017).

          Mediation would be the best in the present scenario since Pete may not be able to prove that the ATV was defective in design. However, should there be compelling evidence that the manufacturer was at fault?  Arbitration would be preferred as the evidence would be considered, and the manufacturer consequently ordered to pay $75,000 as special damages and additional general damages for consequential losses occasioned by the physical injuries suffered by Pete. For instance, Pete would be awarded general damages for pain and suffering.   However, the use of arbitration devoid of an agreement authorizing the parties to use arbitration would bring challenges in enforcing an arbitral award.

          In conclusion, mediation is the best ADR method in the present case since success is not guaranteed if either litigation or arbitration is preferred. There have been accident claims brought against manufacturers that have been adjudicated through mediation with success. A good example is the mediation case between Brian T. Stapleton and Frank J. Ciano, partners. In the above case, the plaintiff suffered injuries and blamed the manufacturer of the equipment for the accident. He claimed that the accident was due to a defect in the equipment. Though contributory negligence was discovered on his part and that of his employer, the defendant benefited from a settlement that led to the payment of a nominal contribution by the manufacturer ("Mediation Concludes Product Liability Case for Italian Manufacturer | Goldberg Segalla", 2015).

References

• Marquis, L., & Esplugues Mota, C. (2015). New Developments in Civil and Commercial. Mediation: Global Comparative Perspectives (p. 155). Springe.
• Wrbka, S. (2014). European consumer access to justice revisited (p. 83).
• Wolf, R. (2000). Effective International Joint Venture Management: Practical Legal Insights for Successful Organization and Implementation. New Delhi: Pentagon Press.
• Mediation Concludes Product Liability Case for Italian Manufacturer | Goldberg Segalla. (2015). Goldbergsegalla.com.
• Goldberg, S., Brett, J., & Brenneur, B. (2017). How mediation works (p. 6).