Conflict Resolution 3471Conflict Resolution 3471

James W. Heller

September 1, 2003

4 Min Read
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Originally Published MX September/October 2003

GOVERNMENT & LEGAL AFFAIRS

Medtech executives can save time and money—and gain better control of the outcome—by using mediation to resolve business conflicts.

James W. Heller

Medical technology companies in the United States collectively spend hundreds of millions of dollars each year resolving conflicts through the legal system. They lose many good customers and suppliers in the wake of litigated disputes. And too often—needlessly often—they relinquish control of their fate to a judge, jury, or arbitrator. Mishandled conflicts result in high legal costs, significant lost work time, damaged relationships, and, for all the time, trouble, and expense, poor outcomes.

Litigation, arbitration, and mediation are the most common means of conflict resolution (see Table I).

Area of Comparison

Mediation

Arbitration

Litigation

Time to hearing

Weeks

Months

Years

Cost to parties

Low

Medium

High

Outcome controller

Parties

Arbitrator

Judge

Procedural formality

Informal

Formal

Very formal

Hearing location

Decided by parties

Decided by arbitrator

Court

Privacy of proceedings

Private

Private

Public

Evidentiary rules

None

Informal

Formal and complex

Witnesses

No

Yes

Yes

Discovery process

No

Limited

Yes

Attorney role

Advisor

Advocate

Advocate

Negotiation method

Issues-based compromise

Position-based

Position-based

Outcome

Win-win

Win-lose

Win-lose

Focus

Future

Past

Past

Relationship between parties

Cooperative

Adversarial

Adversarial

Compliance

Generally good

Variable

Often appealed

Establishes legal precedent

No

No

Yes

Binding and enforceable outcome

Yes

Yes

Yes

0309x67a.jpgLitigation and arbitration are formal, adversarial procedures that cost the opposing parties considerable time and money and leave final judgment entirely in the hands of someone else. The outcome is a win for one party and a loss for the other.

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