Understanding Alternative Dispute Provisions Can Help Avoid Contractual Conflicts
by David K. Taylor, Esq.
road To
resolution
The costly expense and time-draining nature of litigation is purring change to many commercial real estate contracts, which have traditionally required any dispute be resolved through litigation in a court where the property at hand is located. In efforts to avoid litigious headaches, placing alterna- tive dispute provisions in commercial real estate contracts that mandate any conflict be resolved through nonbinding mediation or binding arbitration is a growing trend.
It is vital for any property manager, especially those who
use “form” contracts or who review and approve any real
estate-related contract (including construction contracts),
to know the differences, and pros and cons of nonbinding
mediation and binding arbitration.
LITIGIOUS NIGHTMARE
Any company that has gone through a trial knows the
enormous amount of time and expense involved. Lawyers
and experts cost a great deal of money, and even though
virtually all civil cases settle before trial, settlement usually takes place on the courthouse steps after the parties
have incurred the vast majority of a lawsuit’s hard and
soft costs.
