Dispute Prevention Pledge for Business Relationships
Conflict arises in all relationships. Business relationships are no different. The Dispute Prevention Pledge for Business Relationships is intended to encourage companies and organizations to consider embedding in their business arrangements mechanisms that can help the parties to these arrangements identify conflict when it arises and prevent it from hardening into a value-depleting dispute. It is our hope that companies and organizations can point to their adherence to the Pledge as signifying a willingness to explore the use of dispute prevention mechanisms as well as a recognition of the importance of dispute prevention for preserving business relationships and maintaining business purpose.
Companies, law firms, partnerships, not-for-profits are all eligible to sign the Pledge. Any entity that enters into business arrangements can sign the Pledge and endorse a focus on dispute prevention for business relationships.
Dispute prevention mechanisms are designed to assist and encourage parties in a business arrangement to identify conflict early and find ways to manage it to avoid the conflict hardening into a value-depleting dispute. These mechanisms can be implemented by parties on their own or together; they can reflect best practices and be captured in contractual provisions; and they can involve the engagement of third parties to facilitate dispute prevention. There is no “one size fits all” mechanism. We would be happy to discuss further the variety of options.
No. There may be business arrangements, which the parties do not deem appropriate for such mechanisms, or the parties may not be able to agree upon the use of such mechanisms. The Pledge contemplates these circumstances.
We are hopeful that signatories to the Pledge will share their endorsement with others, will share best practices for dispute prevention with the business community, and will otherwise act as an ambassador for promoting dispute prevention. We also encourage law firms to counsel clients on dispute prevention, and clients to counsel law firms on the same.