Alternative Dispute Resolution Letter

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Alternative Dispute Resolution Letter Powered By Docstoc
					Ms. Margerie Salone
XYZ Incorporated
4237 Cap Ave.
Lansing, MI 48932

Dear Ms. Salone:

       The Circuit Court Judge has requested that we participate in an
Alternative Dispute Resolution “ADR” process; which is the settling of disputes
outside of the courtroom. Generally, about 95% of cases are resolved outside of
the courtroom, usually through some form of ADR. The purpose of ADR is to
mitigate the cost of discovery and to facilitate the quick resolution of a case.
The ADR process is preferable over trial because it is less formal, and it allows us
to have more control over the result of the case. The ADR process also removes
the case from the possibility of a large jury verdict, which is very beneficial in this
case given the injuries sustained by the Plaintiff.

       There are various forms of ADR; two of the most common forms are
mediation and case evaluation. Mediation is an informal, voluntary process,
where an impartial attorney trained in negotiations, facilitates the settlement of
case. The Mediator assists both parties reach a mutually acceptable resolution.
The mediator is paid on an hourly basis, and depending on their expertise, this
may be quite costly. Mediations also last many hours, therefore because of the
costly mediator fees, this process is very expensive.

        The most common form of ADR is case evaluation. Case evaluation
involves a panel of three attorneys, who evaluate both sides of the case and
recommend a settlement amount. This process allows for a more accurate and
more credible decision as to the settlement amount. This recommended case
evaluation award must be accepted or rejected, within one day of the award. If
we reject the case evaluation award and proceed to trial, we must improve our
position by at least 10% of the case evaluation recommendation or face the
possibility of court sanctions. If we are sanctioned by the court for improperly
rejecting a settlement amount, we could be ordered to pay the Plaintiff’s legal
fees from the time of case evaluation through the end of trial. However, by
accepting a case evaluation award, we will not have to go through a lengthy and
costly trial process. Case evaluation is also advantages to us as opposed to the
trial process because juries can be unpredictable and may award excessive
damages if they empathize with the opposing party.

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                          copyright 2010. All rights reserved
        In determining which process of ADR is more beneficial for our case, I
would recommend the case evaluation process. Case evaluation is more
advantageous than mediation because it does not last very long, and therefore is
relatively inexpensive. Also, unlike mediation, you do not have to be present
during the case evaluation process.

       Please, carefully review these options and inform me if you have any
questions regarding the ADR process. I will contact you if any other issues arise.


                                                  KLY Attorney

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                         copyright 2010. All rights reserved

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Description: This is a client letter explaining the alternative dispute resolution process. I drafted this letter for my Pre-Trials Skills course in law school.