The top 3 ways to avoid a lawsuit are to...talk, talk and talk

Thinking as a mediator, there are some assumptions I make in life. Some of these would include:

a. Assumption #1: Problems do not usually start out as monetary problems;

b. Assumption #2: Courts can only make monetary awards;

c. Assumption #3: If the source of problems is not monetary in nature, and Courts can only make monetary awards, then regardless of who wins the Court process, the parties will not be fully satisfied.

Think about it for an instance. Why would someone sue? A wife sues for divorce because she feels she has been handed the short end of the stick in the marriage. An employee sues for unjust dismissal because he feels he has been un-appreciated. A contractor sues for monies due under the contract because he feels he has earned it. (If he thinks he did a lousy job, he would surely take a smaller sum as settlement instead). On the other hand, the employer of the contractor is not paying because he has run into cashflow problems which he expects to be solved in 6 months, but he's too embarassed to tell the contractor about that. If he has informed the contractor, the contractor may be willing to take some instalment payments.

The crux of most claims therefore, is not about money, but about a breakdown in trust, understanding and communication. When one side thinks they have been treated unfairly, or were disrespected, they get angry and starts acting in ways, sometimes unreasonably, which angers the other party in return. Soon, this tremendous amount of negative energy results in a lawsuit, which ultimately becomes the only way to legally "get back" at the other person, or to get what is perceived to be one's own dues.

If a breakdown in trust, understanding and communication lies at the back of most problems, how then can businesses reduce this breakdown in order to prevent lawsuits? The answer could be simply to increase two-way communication. Businesses need to implement systems that would help increase communication with their employees, suppliers and customers. In other words, there need to be more talk, talk and talk.

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To know more about a three-step system of dispute resolution that would help encourage communication, minimise misunderstandings, and promote trust, email me at khenghoe@mycounsel.com.my.