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, and considers that it has saved much more than that as a result of the program.
Other businesses that have experienced significant savings by implementing ADR programs include The Toro Company, Motorola Corporation, and Brown & Root, Inc. Over the past several years, Toro saved over $ 15,000,000 by using ADR to resolve its products liability claims. It reduced its defence and settlement costs by more than fifty percent per claim and its insurance premiums by over $ 1,000,000 per year. Since the beginning of the program, Toro's revenues doubled and its profits tripled, with no concurrent increases in its legal staffing function.
Motorola implemented a strategic system of early case analysis and alternative dispute resolutions that resulted in a more than seventy-five percent decrease in litigation costs. It has sustained that result over a period of years without opening the floodgates of claims or increasing settlement costs.
Brown & Root has, since 1993, required its 30,000 employees to resolve all legal claims against the company through a four-option ADR program. The options include internal open door, internal ombudsman, external mediation and external binding arbitration. As a result, Brown & Root has cut its litigation costs by fifty percent, as well as institutionalized an early-warning system to flag issues in employee relations.
Government agencies, too, have tracked the monetary savings experienced as a result of using ADR rather than traditional litigation methods. As the FDIC, for example, relied increasingly on ADR in liquidations and other litigation matters, its savings went from $ 325,000 in 1991, to $ 4,200,000 in 1992, and to $ 9,300,000 in 1993.
Similarly, in a Deloitte and Touche survey of law firm attorneys and corporate general counsel, seventy-eight percent of whom said they had used ADR extensively, the respondents reported typical savings of fifteen to fifty percent over the cost of litigation. And a review of business disputes resolved by the CPR Institute for Dispute Resolution revealed that 440 companies with over $ 6.8 billion in controversy saved over $ 187 million by using ADR.
The U.S. tort system has been cited as the most expensive in the world. It takes up 2.2% of the gross domestic product- two and one-half times the average of all industrialized countries. Beyond the obvious costs, there is also a hidden cost of litigation, or what has been deemed a "litigation tax," which increases the cost of ordinary and useful products and services from aluminium ladders to doctor's office visits by as much as twenty percent.
C. The Parties Using ADR Maintain Their Privacy and Confidentiality.
In certain sensitive cases, the negative publicity and media attention surrounding a protracted lawsuit can cost a company more than the legal fees and damages involved. Using ADR, that publicity can usually be avoided. One lawyer/mediator cites the example of a UCC-based case brought by a Fortune 1000 corporation against a supplier for the alleged contamination of a food product that the defendant continued to supply to grocers until the contamination could be assessed. In such a case, the negative publicity, even if the allegations are completely unfounded, can cause serious and long-lasting damage to reputation and profits.
The confidentiality of ADR may also foster more complete disclosure at an earlier stage of the process, which ca本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。