What should a Director do when he detects the first signs of a commercial dispute brewing? He or she will know that although the company assets, products, services and reputation must be protected, several potentially harmful factors will be about to emerge. If all attempts to negotiate a deal direct have proved fruitless lawyers will be instructed, legal costs will be incurred, the relationship between the parties may be irreparably damaged and, maybe most important of all, the valuable time of the management team will be taken up and deflected away from its main concern; running the business effectively and efficiently.
At this point the Director should take legal advice and consider all of the different methods of "dispute resolution". Litigation, although marginally quicker, is more costly following the Civil Justice Reforms introduced in April 1999; arbitration is slow and expensive; and adjudication, whilst being fast, is also expensive. One method open to both parties if they
