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Why is Alternative Dispute Resolution Replacing Business Litigation?

Businesses are increasingly turning to various forms of alternative dispute resolution (ADR) over litigation for resolving business conflicts. The most common forms of ADR are mediation and arbitration. To be effective in today’s business world, a Fremont business lawyer must hone his or her ADR skills in addition to being a skilled trial lawyer.

U.S. Department of Justice (USDOJ) 2011 statistics showed that ADR saved the following in terms of time and money:

  • $12,185,750 in litigation or discovery expenses
  • 14,656 days of attorney and staff time 
  • 1,231 months of litigation

Of the cases using voluntary ADR proceedings in 2011, 73 percent resolved. Of court-ordered ADR proceedings, 53 percent resolved and the ADR achieved benefits in 86 percent of the cases. Attorneys are no longer limited to adversarial approaches and more frequently take on roles of negotiators, mediators, arbitrators or facilitator in resolving conflicts. Aside from saving time and money, using ADR allows companies to maintain amicable business relationships and continue working with other companies. By comparison, litigation burns many bridges and leaves companies at odds with each other.

When using ADR, a Fremont business attorney can still protect a client’s rights, advise about relevant laws and advocate for resolutions that safeguard a company’s interests. Knowing an attorney has a successful track record trying cases also provides leverage to resolve matters effectively outside of court.

Garcia & Gurney A Law Corporation offers clients finely tuned ADR and litigation skills and works diligently to help you obtain your objectives and resolve business disputes. We also assist clients with business formation and transactional matters.

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