Emma Sheen:
Good morning, everyone, and welcome to our webinar on You’re in a Dispute – Now What? Navigating Business Conflicts.
My name is Emma Sheen, and I’m a Senior Lawyer in LegalVision’s Disputes and Litigation team, and I’m very excited to be with you today.
Before we begin, there are a couple of quick housekeeping items that I’d like to talk you through.
Firstly, there’s no need to take any notes while you’re listening to this webinar. You’ll receive the recording and the slides in your email following today’s webinar. You’re able to submit your questions in the Q&A box, and I’ll do my best to answer as many as possible at the end of today.
There will also be a feedback survey after the webinar. We really appreciate all the feedback that you have for us, so please take the time to complete that once the webinar has concluded.
This guide provides key information on how to manage a business dispute as quickly and cost-effectively as possible.
Now, moving into today’s topic.
Disputes are an unfortunate but common part of running a business. Whether they arise with customers, suppliers, employees, or business partners, disputes can be time-consuming, costly, and stressful if not managed appropriately.
Today, we’re going to step through what to do when a dispute arises, how to respond early, and what options are available to you for resolving disputes efficiently and commercially.
I’ll be covering the common causes of business and commercial disputes, the first steps you should take if something goes wrong, different ways disputes can be resolved outside of court, and what happens if you do ultimately end up in litigation.
To start with, let’s look at some of the common causes of disputes.
Many disputes arise due to unclear contracts, misunderstandings about obligations, or differing expectations between the parties. In some cases, a dispute may arise because there is no written contract at all, or the contract does not adequately address what happens if something goes wrong.
Disputes can also arise due to non-payment, delays, quality issues, or changes in scope. In an employment context, disputes often relate to termination, performance management, or alleged breaches of workplace laws.
When a dispute does arise, it’s important not to ignore it. Early action can often prevent a dispute from escalating and can significantly reduce the time and cost involved in resolving it.
One of the first steps you should take is to review any relevant contracts or documents. Understanding what the contract says, and what rights and obligations exist, will put you in a much stronger position when deciding how to respond.
You should also ensure that you keep clear records of all communications and events relating to the dispute. This can include emails, invoices, meeting notes, and any other relevant documentation.
At this stage, it’s also important to consider whether the dispute can be resolved informally. In many cases, a direct conversation or a carefully drafted letter can resolve the issue before it becomes more serious.
If informal resolution isn’t successful, there are other dispute resolution options available. These can include negotiation, mediation, or other alternative dispute resolution processes. These options are generally faster and more cost-effective than going to court and can help preserve commercial relationships.
Emma Sheen:
If a dispute does progress further, you may need to consider taking more formal steps. This can include issuing a letter of demand, which sets out your position clearly and outlines what you are seeking to resolve the dispute.
A letter of demand can be an effective way to resolve disputes early, particularly where the other party may not fully understand the seriousness of the issue or the consequences of failing to respond.
If the dispute cannot be resolved through informal discussions or a letter of demand, alternative dispute resolution options should be considered. These include mediation, conciliation, or structured negotiations between the parties.
Mediation is a common and effective option for resolving disputes. It involves an independent third party who assists the parties to reach a mutually acceptable outcome. Mediation is confidential and can often preserve commercial relationships that might otherwise be damaged through litigation.
In many cases, courts will expect parties to attempt mediation or other alternative dispute resolution processes before commencing proceedings. Failing to do so can have cost consequences.
If alternative dispute resolution is unsuccessful, litigation may become necessary. Court proceedings are formal, time-consuming, and can be expensive. It’s important to carefully consider whether litigation is commercially appropriate in the circumstances.
When commencing proceedings, there are several stages involved. These include the preparation of pleadings, the exchange of evidence, and potentially a hearing or trial. Throughout this process, it’s important to continue assessing the strengths and weaknesses of your case.
It’s also important to be mindful that disputes can evolve over time. New information may come to light, or the commercial position of the parties may change. Remaining flexible and open to resolution at all stages is often beneficial.
From a risk management perspective, businesses should also consider dispute prevention strategies. Clear contracts, well-documented processes, and effective communication can significantly reduce the likelihood of disputes arising.
Having appropriate internal policies and procedures in place can also assist in managing disputes efficiently when they do occur. This includes knowing who within the business is responsible for handling disputes and when legal advice should be sought.
Seeking legal advice early can help you understand your options, assess risk, and develop a strategy that aligns with your commercial objectives.
That brings us to the end of the main presentation.
Emma Sheen:
We’ve had a number of questions come through, so I’ll work through as many of those as we can in the time we have left today.
The first question is around what to do if the other party is completely unresponsive. This can be frustrating, particularly where you’re trying to resolve the issue quickly. In these situations, a letter of demand can be useful in prompting a response. If there is still no response, you may need to consider your formal options, including legal proceedings.
Another question we’ve received relates to whether you can recover legal costs in a dispute. The answer depends on a number of factors, including what your contract says and how the dispute is resolved. In litigation, costs are often awarded at the court’s discretion, but recovery is rarely on a dollar-for-dollar basis. In alternative dispute resolution processes, each party will usually bear their own costs unless otherwise agreed.
We’ve also had a question about whether mediation is mandatory. Mediation is not always mandatory, but courts strongly encourage parties to attempt alternative dispute resolution before commencing proceedings. As mentioned earlier, failing to do so can have cost consequences.
Another common question is about how long disputes typically take to resolve. There is no one-size-fits-all answer. Some disputes can be resolved very quickly through negotiation or mediation, while others can take months or even years if they proceed through the court system.
We’ve also been asked about disputes with overseas parties. These disputes can be more complex, particularly where different legal systems are involved. It’s important to review the jurisdiction and governing law clauses in your contract and seek advice early.
That’s all we have time for today. Thank you very much for joining us.
If you have any further questions or would like advice specific to your situation, please don’t hesitate to reach out to the LegalVision team.
Thank you again for your time, and we hope you found today’s session helpful.
We appreciate your feedback – your submission has been successfully received.
