“Out of court” refers to the process of negotiating or resolving a dispute without going to court. It is a great alternative to litigating a case as it can be quicker, less expensive, and result in flexibility as parties involved can come up with their own mutually beneficial resolution. In addition, out of court ‘settlements’ are also confidential and can keep private matters from airing publicly.
Types of ‘Out of Court’ Resolutions
Various kinds of out of court resolutions exist. Disputes can be settled through negotiation, mediation, collaborative law, and arbitration. Through negotiation, parties are able to meet in a private setting with the goal of finding a resolution that is mutually beneficial to each party. In mediation, a negotiator, who can be a legal professional, mediates the dispute between two parties and helps them reach an agreement. Collaborative law, like mediation, involves a negotiator, but also involves both parties seeking advice from their lawyers throughout the process. Finally, arbitration is a more formal version of the above methods where an independent third party, usually a lawyer or group of lawyers, act as a judge and decide the outcome of the dispute.
The Benefits of ‘Out of Court’ Settlement
Out of court settlement offers many advantages as opposed to litigation. These include:
- resolving a dispute quickly;
- preserving privacy;
- saving money and time;
- reaching terms that are more acceptable and beneficial to parties involved;
- having an experienced negotiator to help resolve the dispute; and
- avoiding the courtroom.
The Real Life Case of Johnson v. Smith
As an example, let’s look at Johnson v. Smith. In this case, there were two parties, Johnson and Smith, who were unable to come to an agreement regarding a contract dispute. Instead of resorting to the court system, they chose to participate in arbitration to resolve the dispute. After negotiating with each other and presenting their cases to the arbitrator, they were able to resolve the dispute without going before a judge.
Conclusion
In conclusion, out of court resolution is a great alternative to litigating in the court system. It provides a quicker, more cost-effective, and more flexible way of resolving disputes. In addition, cases can remain confidential, allowing for private matters to remain private. For those businesses or individuals hoping to avoid the court system, out of court resolution could be a great alternative.