Managers are sometimes the first line of opportunity in resolving a dispute before it turns into litigation. Assume that you are an MII manager in charge of the property in New Hampshire described in this chapter’s Theory to Practice. Write a two- to three-page memorandum to your senior manager that describes the relative advantages of ADR over litigation in the MII-CP dispute. Using Table 4.1, offer suggestions on how this particular dispute may be resolved.

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TABLE 4.1 Dispute Resolution Options for Classic Retail Outlets versus SignCo Action Lawsuit Draft a formal Complaint against SignCo; file the Complaint in the appropriate court of law; and serve the Complaint, along with the summons, on SignCo. Arbitration If the contract between CRO and SignCo has an arbitration clause, submit the dispute to arbitration as per the arbitra- tion clause in the contract. Informal settlement Cancel the contract, agree not to sue each other, and agree to a figure that (1) compensates CRO for the cost of the temporary signage and (2) allows a percentage of the total fee to compensate SignCo for time invested in the project. Potential Benefits Court-ordered resolution to have the deposit refunded and have SignCo pay addi- tional damages to compen- sate CRO for the cost of the temporary signage. Enforceable resolution to have the deposit refunded and have SignCo pay addi- tional damages to com- pensate for the cost of the temporary signage. 1. Parties agree not to sue each other. 2. Potential exists to preserve the business relationship. 3. Time and talent are not used to prepare for dis- pute resolution methods. Potential Costs Significant expendi- tures: legal fees, hard costs (such as travel and fees for experts), human resource costs when time must be devoted to litigation procedures, appellate costs. Moderate range in legal fees, arbitration/ mediation fees; lim- ited human resource expenditures; no chance of appellate fees (if binding). Low range of legal fees, moderate human resource investment, no threat of litigation by SignCo. Risks 1. Loss at trial or loss upon appeal. 2. Legal fees may be higher than the final judgment amount awarded. 3. Possible countersuit by SignCo. 4. Permanent damage to business relationship. 5. Potential for bad publicity. 1. Loss at arbitration that may not be appealed (if binding). 2. Win in arbitration, but may still have to go to trial (if nonbinding). 3. Potential damage to business relationship. Settlement negotiations may drag on, and CRO must find a new vendor.