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WHAT WE BELIEVE
Negotiation is the way to solve disputes in the best and more effective way, because:
- it helps to preserve the relationships between parties involved in a conflict;
- it allows parties to find the proper solutions for their specific business – a negotiated exit from a dispute comports a “personally tailored” settlement.
On the contrary, when a dispute is solved by a judgment decision or an arbitration award, generally the solution is:
- expensive (moreover, not all costs can be often recovered from the loser);
- not predicable (also because often it’s not sure which is the law applicable to the contract and which is the competent jurisdiction, especially when it’s not ruled in the contract);
- made on the base of a law that is not familiar or “socially accepted” by all parties, especially when the applicable law is imposed in the contract by the more powerful party;
- riskily elaborated by a judicial authority that could not have specific competence in the matter of the dispute, especially if such authority has not specialized department in commercial trade or has not sensibility to rules and business practices existing in the specific sector in which the parties operate;
- rigid: application of rules established by law comports a decision “cut with the sword”;
- destroy often relationship between parties or the same business (it could be the case of a joint-venture equally controlled by both parties: if a dispute paralyze joint-venture activity, often the solution is only the closing of the common society);
- takes a lot of time, with no guarantees that the judgment will be concretely applicable at the end of the trial.
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