Why American Companies Resolve Disputes Outside of Litigation

On March 8, the National Arbitration Forum blog reported that Fullbright and Jaworski conducted a survey of American companies which revealed that, “in recent years, American companies of all sizes have become less reliant on outside counsel.” See
http://arbitration-forum.blogspot.com/2008_03_01_archive.html While the NAF bloggers speculate that the popularity of arbitration may be behind this change, it is hard to imagine that companies’ love of arbitration is the only reason they are using outside counsel less frequently. I imagine that increased use of mediation and development of more effective in-house dispute resolution systems are also contributing factor. The survey makes interesting reading and confirms that in an effort to save money and reduce conflict, big companies are continuing to support the alternative dispute resolution movement.

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