Members and listed businesses
may use this document as a template to establish binding dispute resolution
procedures with their clients. You must notify the GDCA of your intent to enter
into the GDCA binding dispute resolution with your clients, and have the GDCA
approve of your contract before the GDCA can agree to it.
This binding dispute resolution (“BDR”) agreement is entered into by (Name of
organization) and (Name of client) to
establish a procedure to resolve a dispute that has arisen during the
performance of a contractual sale or service.
Both parties, sharing a desire to avoid expensive, time consuming litigation and
to identify and mutually eliminate or resolve disputes hereby agree to submit to
the GDCA binding dispute resolution process.
1. Conflict of Interest:
(a) The GDCA representative(s) involved in the BDR must at all times remain
unbiased relating to the parties or an issue in controversy. If the GDCA
director(s) find(s) that he/they cannot be unbiased, or that a conflict of
interest might exist, he/they shall excuse him/themselves from participation in
the specific issue creating the bias or conflict.
2. Procedures:
(a) The parties agree to present their positions on their dispute(s) to the GDCA
Board of Directors consisting of neutral parties.
(b) Prior to the BDR proceeding, the parties will cooperate with each other in
exchanging all documents that are relevant to the dispute and in permitting
reasonable review of each other’s files. At the request of the GDCA, each party
will send copies of all documents that are relevant to the dispute to the GDCA.
The parties will cooperate in selecting documents to avoid duplication between
the submissions of each party.
(c) The parties will make every effort to submit a list of issues in the order
that is most logical for presentation to the GDCA, including a listing of
witnesses or other third parties that may have information directly impacting
the BDR process.
(d) All participants will refrain from statements that are unduly argumentative
or contentious.
(e) The proceedings will not be recorded and witnesses will not be sworn.
However, all participants will be expected to
be forthright in their statements and to be fully open and honest in their
dealings with each other.
(f) The principals may conduct discussions with or without the GDCA. The
principals may also request the GDCA to present its views on any issues or to
propose resolution of one or more of the issues in dispute. Either principal may
correspond privately and confidentially with the GDCA to discuss possible
settlement positions, and the GDCA will not reveal any confidential information
to the other party, unless authorized to do so.
(g) All parties will endeavor to keep the negotiations active until a binding
resolution is reached by the GDCA. If settlement is not reached between the
principals, the principals may continue negotiations for any period that is
deemed to be mutually desirable.
(h) At any time before the final binding resolution, the principals may come to
terms and agree to a mutual settlement. At that time, the GDCA must be
immediately informed, and the BDR will be discontinued. The settlement entered
between the principals will be deemed by the GDCA as the final binding
resolution, as if it was handed down by the GDCA.
(i) If settlement is reached, either party may call for the GDCA to prepare a
report documenting the settlement and stating its conclusions as to its merits.
Any such report will be delivered to each party promptly after it is requested.
This report may be used by either party to justify the settlement within its own
organization.
(j) This entire process is a settlement negotiation and all offers, promises,
conduct, or statements made in this BDR proceeding are confidential and shall be
inadmissible in any subsequent litigation (including proceedings before a board
of contract appeals) of the disputes covered by this agreement. All written
materials created specifically for this proceeding are also confidential and
inadmissible in subsequent litigation. However, if settlement is reached, any
such statements and written material may be used to justify and document the
contract modification embodying the settlement.
(k) The GDCA will treat the subject matter of this proceeding as confidential
and refrain from disclosing any of the information exchanged to third parties.
The GDCA is disqualified as a witness, consultant, or expert for either party in
any matter relating to the disputes covered by this agreement.
(l) The GDCA fees and actual costs, such as phone calls, postage, meetings, etc.
of conducting the BDR proceeding will be paid jointly by the principals.
3 Principles:
(a). The GDCA representative will inform himself of the facts, issues,
positions, interest, documents, and supporting arguments relating to a disputed
matter. It is the purpose of the representative to foster the negotiations
between the parties, not to become involved in the substantive issues. The
representative may do this by:
1. facilitating communications between the parties:
2) restating positions,
3) clarifying statements and arguments,
4) setting ground rules for discussion (such as no interruptions, no
unsubstantiated allegations, etc),
5) separating emotions and personality from the issue
6. helping clarify the parties' positions,
7) separating facts from allegations,
8) separating legal issues from factual issues,
9) helping the parties narrow and define the issues,
10) finding where the parties agree, and where they disagree,
11) separating the parties stated positions from their real interests
12) striving to obtain first hand knowledge of the facts or talk to those with
first hand knowledge
13) assisting in settlement by finding areas of mutual interest
14) identifying innovative solutions or recommended settlements
15) seeking win-win strategies
16) evaluating the parties positions and advising of logical weaknesses
17) helping the parties to stay focused on the big picture
4. The representative is not limited to the activities identified above, but is
expected to act in accordance with those activities as the representative deems
necessary.
5. The forum for the BDS may be either communication by e-mail, chat room
conference, personal meeting or telephone conference at the discretion of the
representative and the parties.