Dispute resolution planning is becoming a critical function of corporate law departments, law firms, and public sector legal departments. Powerful economic incentives, increased emphasis on risk management, and the growing com-tract. Much more sophisticated drafting techniques exist today. Most notable is the use of the multistep, or multi-tiered, dispute resolution clause.
A multistep clause provides for sequential stages of dispute resolution. Negotiation and mediation commonly are used by the parties before resorting to arbitration or litigation. The ratioplexity of dispute resolution options are among the reasons that compel private and public sector lawyers to engage in dispute resolution planning.
Predispute resolution clauses are an important component in dispute resolution planning for business-to-business transactions. Agreeing upon a process to manage disputes before they arise yields multiple benefits, including efficiency, predictability, and controlled risks. To assist counsel, particularly transactional lawyers, to meet the challenges of providing sophisticated advice about drafting dispute resolution clauses, CPR has published the CPR Drafter's Deskbook for Dispute Resolution Clauses. The deskbook's focus is on business-to-business agreements and clauses. It features model clauses, draftingchecklists, and more than 35 sample clauses from more than 2 0 leading companies. (For ordering information, go to the Publications link at www.cpradr.org.) This edition of the ADR Counsel In Box is a supplemented excerpt from the CPR Drafter's Deskbook.