What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating...
-
Upload
valentine-mcdaniel -
Category
Documents
-
view
217 -
download
0
Transcript of What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating...
![Page 1: What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating Corporate Governance Disputes Paris, 12 Februari 2007.](https://reader036.fdocuments.us/reader036/viewer/2022082506/5697bf8c1a28abf838c8bb0e/html5/thumbnails/1.jpg)
What are the Limits of ADR?- And what are the limits of judicial
dispute resolution?IFC
Mediating Corporate Governance Disputes
Paris, 12 Februari 2007Eric M. Runesson([email protected])
Eric M. Runesson
![Page 2: What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating Corporate Governance Disputes Paris, 12 Februari 2007.](https://reader036.fdocuments.us/reader036/viewer/2022082506/5697bf8c1a28abf838c8bb0e/html5/thumbnails/2.jpg)
What are the limits of judicial dispute resolution?
One-dimensional perspectiveExorbitant information costsDecisionmakers have less information than dispute ownersCannot deal adequately with multi-issue disputes
Eric M. Runesson
![Page 3: What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating Corporate Governance Disputes Paris, 12 Februari 2007.](https://reader036.fdocuments.us/reader036/viewer/2022082506/5697bf8c1a28abf838c8bb0e/html5/thumbnails/3.jpg)
Legal persons as parties to a dispute
Legal persons cannot have feelingsLegal persons must act through agentsAgents have feelingsAgents may have other interests than the principal
Eric M. Runesson
![Page 4: What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating Corporate Governance Disputes Paris, 12 Februari 2007.](https://reader036.fdocuments.us/reader036/viewer/2022082506/5697bf8c1a28abf838c8bb0e/html5/thumbnails/4.jpg)
What may cause a negotiation failure?
Eric M. Runesson
Economic calculationsStrategic considerationsPsychological traps and cognitive limitations (of agents)
![Page 5: What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating Corporate Governance Disputes Paris, 12 Februari 2007.](https://reader036.fdocuments.us/reader036/viewer/2022082506/5697bf8c1a28abf838c8bb0e/html5/thumbnails/5.jpg)
What psychological traps do we need to avoid?
Reactive devaluationThe anchoring trapThe framing trapOver-optimismPartisan perception
Eric M. Runesson
![Page 6: What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating Corporate Governance Disputes Paris, 12 Februari 2007.](https://reader036.fdocuments.us/reader036/viewer/2022082506/5697bf8c1a28abf838c8bb0e/html5/thumbnails/6.jpg)
How partisan perceptions work
Eric M. Runesson
![Page 7: What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating Corporate Governance Disputes Paris, 12 Februari 2007.](https://reader036.fdocuments.us/reader036/viewer/2022082506/5697bf8c1a28abf838c8bb0e/html5/thumbnails/7.jpg)
The economic dimension revarding low-probability of success
plaintiffs Plaintiff has a 10% chance of vinning 80 and a 90% risk of being liable for dispute resolution costs of 10;Expected monetary value = -2
Defendant 10% of loosing 90 (English rule);Expected risk = -9
Plaintiff can gain up to 9 by risking 2.
Eric M. Runesson
![Page 8: What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating Corporate Governance Disputes Paris, 12 Februari 2007.](https://reader036.fdocuments.us/reader036/viewer/2022082506/5697bf8c1a28abf838c8bb0e/html5/thumbnails/8.jpg)
Adding the risk aversion of the defendant agents
Risk neutral principalPersonal liabilityLack of transparencyInvestors may punish ADR-friendliness in corporate governance disputes
Eric M. Runesson
![Page 9: What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating Corporate Governance Disputes Paris, 12 Februari 2007.](https://reader036.fdocuments.us/reader036/viewer/2022082506/5697bf8c1a28abf838c8bb0e/html5/thumbnails/9.jpg)
A proposed ADR agenda
Help disputants eliminate psychological trapsHelp eliminate the agency problem Help disputants make rational economic calculationsHelp disputants make rational strategic decisionsHelp disputants think about fairnessMake the market believe that
Eric M. Runesson
![Page 10: What are the Limits of ADR? - And what are the limits of judicial dispute resolution? IFC Mediating Corporate Governance Disputes Paris, 12 Februari 2007.](https://reader036.fdocuments.us/reader036/viewer/2022082506/5697bf8c1a28abf838c8bb0e/html5/thumbnails/10.jpg)
Sandart & Partners Advokatbyrå KB
Engelbrektsgatan 7 114 32 StockholmTel 08-679 09 00 Fax 08-679 09 10
Sandart&Partnerssandart.se
Eric RunessonAdvokat, jur.dr, doc., partner
Direkt 08-679 09 11 Mobil 0708-32 78 24
Eric M. Runesson