Are there benefits to establishing an early dispute resolution or alternative dispute resolution program?
Neier: That decision must be made on a case by case basis. For certain contracts that companies enter into, it is entirely appropriate to have an alternative dispute resolution (ADR) provision in the contract for the resolution of disputes. The detail in each of these provisions will depend on the parties’ relationship and the type of contract entered into. Some parties choose to include general provisions while others include explicit clauses that go as far as to name the arbitrators that should be appointed in the event of a dispute. We are called upon frequently by lawyers drafting contracts and other forms of agreements to assist them in the wording of the ADR provisions as those provisions relate to a potential dispute regarding accounting issues. We often assist attorneys in preparing the provisions of an agreement that deal with post-closing purchase price adjustment transactions and the provisions of the ADR clauses that define the role of the accounting arbitrator in the event
