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Scan_Doc0012- Article in Lex Witness Feb 2015


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Scan_Doc0012- Article in Lex Witness Feb 2015

  1. 1. 1. Attitude of Disputing Parties • Non compromising • Willingness to compromise • Stubbornness • Negotiate Lack of Communication • Poor communication • Keep open channels of 2. • Misunderstanding communication. Acting by emotion and not reason • Decisions taken in heat of moment. • Think rationally and with a 3. • Emotions cloud objectivity cool mind. 4. Cost • Play an important role in deciding • Economics of Litigation weighs whether or not to litigate. merit. • Cause damage to a Company's • Proper handling of media, 5. Reputation/Goodwill reputation and standing particularly external agencies to avoid fallout within Industry/Employees/Peers. of brand. -s: Leads to 6. Distraction from core work area • Waste of time • Channelise energies to prevent • Emotional stress fallout. • Reduced productivity .counsel corner Litigation Management FACTORS WHICH GOVERN LITIGATION BACKGROUND Litigation across the world has become very complex, time consuming and expensive. Judiciary is burdened with ~ cases which often drag on for number of years. This poses a serious challenge to organisations to do business. My three decades of experience as a General Counsel has taught me the following methods of Litigation Management which is explained below for all. Hope you all benefit by the same.
  2. 2. counsel corner In Summary I recommend the following: STEPS: ORGANISATION NEEDS TO TAKE TO MINIMISE RISK OF LITIGATION AND USHER IN CORPORATE COMPLIANCE. Following steps can help: 1. Leadership a. Proper Communication with all concerned b. Identification of high risk markets c. Creation of Compliance Committee 2. Standards & Controls: a. Due Diligence for screening business collaborators and third parties including strict compliance in contracts. b. Establishing sound internal controls systems. 3. Training Periodic training to allincluding Board. 4. Policies & Procedures a. Regular updation of Company Policies & Procedures b. Standard Templates for employees, Process Owners dealing with Company. Uniformity will help remove/reduce subjectivity. c. Include Litigation provisions in contracts alongwith clauses on indemnity, natural disasters etc. d. Mandatory mediation and conciliation provisions before arbitration. e. Abstraction mechanism and clause. f. Parties to be bound by neutral experts opinion. B. GENERAL a. Speed in taking decisions and having a faster review process which conforms to the business structure and categorises all anticipated risks. b. Empathy with customer can lead to amicable solution. c. Avoid working with litigious parties. d. Mediation through use of impartial parties to resolve issues. e. Ethics- An ethical conduct would also win. f. Emphasis on written documentation. SIX STEPS TO PREVENT /MINIMISE LITIGATION 1. Rapport and communication between External Agencies and Company/ Intermediaries go a long way towards better understanding. 2. Rationale on behalf of Company/ Intermediaries in what is being done should be adequately documented with all available documentary supports. 3. Records should be prepared carefully, be complete, accurate, legible, relevant, timely and generously informative. 4. Remarks being made with External Agencies should be made with a certain degree of caution. 5. Treat External Agencies with respect, empathy and a humanistic approach. 6. Results of the outcome of reports should be shared carefully with the External Agencies to satisfy them of fair process involved. ~ S. Ramaswamy EVP-GroupGeneralCounsel, EscortsLimited and President of ICCA. Disclaimer- The above article is based on author's research and his views. A Lex Witness Counsel Connect Initiative ." February 2015 I Lex WITNESS I 49 - -