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540 Wk 4 Non Employment Conflict Adr Worksheet

2485 words - 10 pages

Resolving Non-Employment ConflictAlternative Dispute Resolution Research WorksheetUniversity of PhoenixAlternative Dispute Resolution Research WorksheetResolving Non-Employment ConflictResearch-The purpose of this research is to identify potential alternative dispute resolution strategies that could be used by M-Core.Topic : Alternative Dispute ResolutionThe Toro CompanyThe Toro Company, a large manufacturer of lawn and turf care products, had a problem with the manner in which it dealt with liability claims. The company had taken on the traditional method of going to court to litigate its claims. This method although most often favorable toward the company, cost the company time and money. The time spent on a claim could last years and cost significant sums of money. Often the time spent preparing for a trial was wasted as the claim was settled before the trial began but not before the years of preparation for that trial.In an effort to curtail losses in time wasted and money, Toro turned to mediation. "This allowed the company to educate the claimant fully as to the risks of a jury trial, without any dilution of reality by the claimant's lawyer. Further, since a primary function of the mediator is to ensure that the claimant thoroughly understands the weaknesses of his/her claim, mediation created a forum for settlement negotiations unlike any other" (Olivella, 1996). Toro devised a system to evaluate each claim in an effort determine the claim's liability and damages. This system saved Toro money and time as the work was done in a matter of weeks instead of years. This system was an aggressive fact finding process conducted outside of litigation. This pre-litigation mediation saved Toro millions in damages and continues to benefit the company. Toro recognized the benefits of this pre-litigation mediation as seen in 90 to 95 percent successful resolution of claims. Additionally the number of active claims has drastically reduced from approximately 150 to 35 cases and the expenditures have been reduced by an average $45,617 per claim, resulting in an overall cost savings of over $5,000,000. Finally, the company's annual liability insurance premium was reduced by approximately $1,800,000 per year from the inception of the program until the company recently decided to become self-insured"(Olivella, 1996).What Toro learned was that mediation works and as such has saved the company millions in damages and time. M-Core can take a lesson from Toro and engage in mediation with the three holdouts. Additionally by using fact finding, both sides, M-Core and the holdouts, can fully understand the consequences of their actions. By using pre-litigation mediation, M-Core could resolve the issues causing the three homeowners to holdout. This would put the company back on track with its plans for the research and development campus rather than spending time in litigation, which would put the project behind in terms of years and costs.Honeywell and UnisysM-Core...

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