We actually don’t know that all cases settle before trial – what we do know however, is that most do not proceed to trial
Real push for parties to settle across the map, at all levels
Generally, settlement is encouraged by courts (see seidel, para 2) “absent legislative intervention, the courts will generally give effect to the terms of ac commercial contract… even a contract of adhesion, including an arbitration clause”. Also statutes like Commercial Mediation Act.
Even within rules of professional conduct- obligation to canvass- at least discuss- ADR with client (r.3.2-4)
DR continuum: Recall 6.7% of cases go to a court or tribunal (Everyday Legal Problems)
Mediation: parties still have control, though consensus reached is guided by mediator
Distinguish from civil litigation which is a rights-based, distributive (competitive, zero-sum game) process. Negotiation is an opportunity for people to explore their interests – what they may care about but may not be entitled to – and is a more integrative process
This is to say, in ADR, interests to be reconciled are at play, not (only) positions (rights). They are integrative, not (only) distributive (competitive) processes.
If parties go to court, they can only get the relief/remedy available for the court to give – determined by legal rights that were alleged to be infringed in (statement of claim)
Separate the people from the problem, where possible
Prioritizes parties to think in terms of BATNA (“best alternative to a negotiated agreement”), as opposed to a “bottom line” – think about what the deal is worth, how many alternatives you have. Good strategy to create alternatives
Resolution ideally falls within ZOPA (Zone of Potential Agreement, ZOPA) – where the rights and interests for both sides overlap
E.g. defamation discount broker case: forced apology vs. damages