The document outlines factors that govern litigation and steps organizations can take to minimize litigation risks and ensure corporate compliance. It recommends establishing open communication, identifying high-risk areas, creating a compliance committee, conducting due diligence on partners, implementing strong controls and policies, providing regular training, and including dispute resolution clauses in contracts that mandate mediation before arbitration. Additionally, it suggests making timely decisions, treating external agencies with respect, maintaining thorough documentation, and sharing outcome reports to resolve issues and prevent unnecessary litigation.

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
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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.

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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
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