Abu Dhabi: Saudi Arabia’s Ministry of Justice has resolved commercial disputes worth SR25.8 million out of the court, Saudi media reported.
The Alternative Dispute Resolution via the Reconciliation Centre provides a better option to litigation that can nip lawsuits in the bud, resolve long-standing disputes, and sometimes produce win-win solutions to old and bitter fights that would otherwise only leave both sides damaged.
In January, Saudi Minister of Justice Dr. Walid Al Samaani inaugurated the model building of the Reconciliation Centre, which provides the parties involved in disputes access to a group of specialised mediators selected by the ministry.
The process of reconciliation takes about less than 45 days once the request is submitted, in addition to providing alternative solutions that satisfy the parties and facilitate settlements without referring the disputes to courts.
Sources said attending the reconciliation sessions is limited to the two parties. However, they can retain attorneys to attend on their behalf.
They added there are few things managers dread more than litigation. Even petty cases may damage relationships, tarnish reputations, and eat up enormous sums of money, time, and talent. Most managers know that lawsuits are steadily increasing, but smart managers know that they are also increasingly avoidable.
According to the Harvard Business Review, US corporations pay more than $20 billion a year to lawyers — an alarming fact that distracts attention from other and often more important business costs of litigating disputes. Lawyers’ fees and other direct costs get the most attention because they’re easy to measure. But the indirect business costs of litigation, the cost of diverting key personnel from productive activities, or the cost of destroying a profitable relationship with a former business ally, are perhaps equally important. From the company’s perspective, they may be more important.
