Managed Dispute Resolution or “MDR” is a new and innovative dispute resolution process that has been specially designed for lawyers and their clients seeking a neutral forum in which to conduct “no-nonsense” settlement negotiations. MDR has some features that are similar to those found in other ADR processes such as mediation, arbitration, and collaborative law. It is unique, however, in that it has one additional feature – the firm commitment of a skilled and experienced MDR Manager to help the parties avoid the expenditure of unnecessary time and cost.

The MDR process is can be used effectively in almost every type of domestic or international civil dispute, but it is especially suited to cases in which the parties and their lawyers genuinely want to resolve their dispute as quickly as possible and with a minimum expenditure of time and expense.

The parties and their counsel can jointly select a MDR Manager from a select group of experts in a wide range of fields. In disputes involving parties who speak different languages or have significant cultural differences, the parties can select a bi-lingual MDR Manager or sometimes MDR Managers from each country involved. After the MDR Manager has been selected, all matters, including the Manager’s compensation, are handled directly by the parties and their counsel with the Manager so selected.

Once selected, the MDR Manager meets with the parties and their counsel to explain the process protocol and to draft the terms of the MDR Agreement, including an appropriate provision relating to the disclosure of electronically stored information. In this agreement, the parties confirm their mutual commitment to engage in good faith settlement negotiations and to work cooperatively with the MDR Manager and each other in scheduling and conducting the process. As an additional option, the parties may also agree to submit any unresolved issues to a mutually selected arbitrator for a binding determination. Under a typical MDR agreement, the parties commit to meet in a scheduled sequence of half-day sessions over a period of several weeks or months to exchange documents and information; to identify and evaluate the issues; and to engage in meaningful settlement negotiations. During these meetings the MDR Manager works cooperatively with the parties and their counsel, providing guidance and encouragement in the efficient scheduling and conduct of the MDR sessions.

The longer a dispute is allowed to continue without final resolution, the more time, cost and business disruption the parties will likely experience. An experienced MDR Manager can help the lawyers and their clients resolve even complicated disputes more expeditiously and at less cost than normally required in a traditional dispute resolution procedure.

The key to process efficiency is largely based on two factors: First, the parties and their counsel must be genuinely committed to cooperate with the MDR Manager and each other in the conduct of the MDR process. Second, the MDR Manager must have the leadership skills and experience to guide the parties and their counsel through the steps of the MDR process. When both these factors are present, the parties can reasonably be assured that the process will have a successful outcome.

In addition to the economic savings of time and cost, the MDR process offers several additional benefits:

• It provides a safe and sensible forum in which lawyers and their clients can settle their dispute with a maximum amount of self-determination.
• It encourages the collaborative identification and prioritization of issues and interests at an early point in the proceeding and the use of an efficient settlement protocol agreement, including an appropriate stipulation relating to the disclosure of electronically stored information.
• It gives the disputing parties the additional option of submitting any unresolved issues to a jointly-selected arbitrator for a binding determination. Thus, the parties can assure the finality of the process through the terms of their own agreement.
• It also offers an optional method for enforcing the terms of a settlement agreement, including the arbitrator’s award, through banking procedures such a standby letter of credit, thus avoiding the risk and uncertainty of seeking confirmation of the award in a foreign judicial system.