Using Alternative Dispute Resolution (ADR) to Manage the Risks

of Employment Claims.

 

The risks associated with employment litigation can often be in direct conflict with our business clients’ increasing need for greater cost certainty and predictability. Recent studies have underscored a built-in jury bias toward employers in employment lawsuits. This bias may explain the increasing risk of runaway jury verdicts both inside and outside Ohio, including a recent string of multi-million dollar verdicts against Ohio employers in single plaintiff discrimination cases in 2008. In states like Ohio, this risk is even greater because employment laws enable plaintiffs to avoid federal court jurisdiction, even in lawsuits against out-of-state corporations. The risk of this kind of jury verdict, coupled with lengthy dispute cycles common to the civil justice system, can often result in skyrocketing costs. 

 

To address the imbalance and inefficiencies in the state court system, we have developed a model alternative dispute resolution (ADR) plan. We have successfully enforced our two-step ADR plan, which begins with mediation followed by binding arbitration, on behalf of clients in numerous court actions both inside and outside of Ohio. 

 

Under our ADR plan, an employer and employee submit their employment dispute to a professional decision maker, potentially minimizing the cost and delay inherent in traditional employment litigation and limiting the potential for a runaway jury verdict. Although no post-dispute strategy can avoid all costs and risks, our ADR plan has helped many clients cost-effectively address, resolve and, in many cases, avoid employment-related claims.

 

While ADR may not be appropriate for every business, we encourage all of our clients to carefully consider our ADR plan as part of a comprehensive and proactive labor and employment risk management strategy.