Dispute resolution is a mechanism to resolve disputes. All disputes are possible to be settled, be it commercial, domestic or family related matters. In a bigger picture, disputes can be international or domestic. There are two mechanisms to resolve disputes, either through the courts or via Alternative Dispute Resolution (ADR). Settling disputes through the court system is the most opted method, whether it is international or domestic. The bindingness and enforceability of a verdict from the court gives confidence to the litigants to believe that their rights will be upheld; and if not, there are still tiers to climb for an appeal. If the contract is breached, with locus standi and cause of action, the litigants can bring the case to the court. Once a decision is made, it is then binding upon both parties to follow the decision under the name of “the Order” from the court. This might sound very simple; however, on the contrary, it involves a lot of procedures, costs, evidences, witnesses, summons, etc. Furthermore, the disputes settled in public courts can be heard by the general public and could probably bring reputation risks. Companies that rely on business reputation might prefer not to go through the court for settlement but rather opt for settlement via negotiation. However, should we be able to negotiate the settlement of millions, or billions, of dollars due to negligence or breach of contract? The answer is in the affirmative. Negotiation is a significant part of ADR. The negotiation procedure is an agreement between two or more parties in their efforts to reach a compromise. This is at the core of most ADR processes. Generally, negotiation occurs directly between the parties and their counsels, and does not involve the neutral third party. However, if the negotiators break down and/or reach an impasse, then a third party may be introduced, which is commonly referred to as the facilitated negotiation. Facilitated negotiation tends to be a more ad hoc and informal process than mediation. Facilitated negotiation uses a neutral objective person in negotiation sessions to help the parties reach an agreement more quickly. This neutral facilitator plays the role of advancing the discussions by ensuring that the parties understand each other’s positions and by extracting settlement strategies. During negotiation, the primary function of a facilitator is communication rather than settlement. Thus, the facilitator encourages the parties to reach a settlement on their own without influencing their decision or making judgments on how the dispute should be settled under negotiation.
