Minimising Legal Costs When Resolving Disputes

minimising legal costs when resolving disputes

Disputes arise from time to time over a range of issues and can involve customers, suppliers, other principals, employees or personal family issues within a family business, or on personal matters in respect to claims against deceased estate, breakdown in family relationships or residential disputes.

Resolving a dispute can take considerable time, effort, money and stress that could be better utilised for a more productive purpose. Therefore it will be preferable to resolve your dispute as cost effectively and with as little damage to any relationships as possible.

While there could be several ways to resolve disputes, many can be easily managed through direct discussion, common sense and informal negotiation between parties. However, some significant or complex disputes may need to be resolved using a more formal process.

What follows is an overview of how disputes can be resolved whilst minimising your legal costs.

Top 7 Tips for resolving disputes:
  1. Identify what you want
  • Be very clear and realistic as to the outcome that you desire.
  • Understand the remedy being sought by you and the other party. The remedy could include compensation, refund, repair, replacement, an apology, and change in behaviour or a combination of these.
  • Ask the other party about what is important to them and what remedy they are seeking.
  • Each party should have a common interest in resolving the matter quickly, fairly and cheaply.
  • A direct exchange of information may present a solution that is acceptable to both parties.
  1. Be clear and logical
  • Document the relevant details about the dispute.
  • Record dates, times, product or service details, summary of discussions, promises or verbal agreements and the details of each party to the dispute.
  • Document each problem relating to the same issue separately.
  • It may be possible to resolve a few smaller issues one at a time.
  • Find out the rights and obligations of each party to the dispute.
  • The solution or action required will often be obvious once the rights and obligations are clarified.
  • Record how each party would like the dispute resolved.
  1. Organise your evidence
  • Collect all documents relevant to the issue (contracts, leases, receipts, warranties, invoices, orders, and photographs).
  • Identify relevant clauses of any contract or lease.
  • Organise the facts in chronological and subject order.
  1. Act appropriately
  • Present your claim calmly and show respect for the other party’s point of view.
  • Bad faith or animosity from a badly managed dispute can cause long term adverse effects.
  • Be prepared to compromise when the other party is prepared to do the same.
  1. Keep momentum
  • Present your claim calmly and show respect for the other party’s point of view.
  • Bad faith or animosity from a badly managed dispute can cause long term adverse effects.
  • Be prepared to compromise when the other party is prepared to do the same.
  1. Monitor progress
  • Review and monitor progress and costs regularly.
  • If expectations are not being met discover why.
  • Be flexible
  1. Look for every opportunity to settle
  • Depending on your particular circumstances settlement may be a desirable outcome.
  • Negotiated settlement can be cheaper than going to court.
  • Consider a settlement, if that settlement is fair.
  • In particular consider the likely future costs if the offer is not accepted.
  • If the likely future costs are similar or greater to the difference in offers you should seriously consider settlement, and
  • Always remain open to all your options instead of pushing for one option.

Commercial Litigation Lawyers Sydney at Pavuk Legal can provide you with legal advice in regards to resolving and effectively managing your dispute.

Many other essential hot topics for business owners is all found in the book Nobody Else’s Business. Nobody Else’s Business is about helping business owners live the life they want to live, now and in the future. It is the ultimate guidebook for succession planning of modern Australian businesses.

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