By Dr Thomas Ditges, DITGES Rechtsanwälte Wirtschaftsprüfer Steuerberater
Conflict resolution is situational. In the private sphere, many people seek legal clarification and, sometimes, undue advantages, if the law enables them to. The good entrepreneur has no lawsuits. If the legal situation is unclear, he derives his planning from experience. Although it is not possible to avoid every dispute, his ability to anticipate legal issues can substitute for legal advice.
Labour law protects the employee. That must be compensated. Formulas for the calculation of severance pay convey uniformity in a way of a fictitious law. That, too, must be mastered.
The business dispute is different; liability for performance is often complicated, so much so that all involved parties may fail in the end, often beginning with the court. How can a judge, who has never been tried and tested in business and who has never felt the danger of personal liability, understand what production, commercial, consulting or managerial situations involve, what average due diligence obligations they actually entail and what legal duties they create?
Consumer protection overall does not replace knowledge. If the overview is lost, procedural law comes into play. Which party is responsible for the ambiguities? The judge unpacks his toolkit, the procedural code. This intellectual approach conveys a high-value appearance. The ropes of procedural law must also be mastered. Nevertheless, procedural law does not have a pacifying effect on the parties. It is not without reason that business has lost confidence in the judiciary. In real terms, the number of proceedings has been declining sharply.
Arbitration is one solution. Arbitration can guarantee competence, but it can also be expensive, lengthy and imposed.
Mediation is another alternative, when the parties negotiate without a judge. The mediator is the catalyst for the proceedings, resulting in a profit for the client. Tough, fast, discreet and resource-effcient negotiation is rewarded. Irrespective of the court and attorney fees, the reduction of imputed internal costs is a significant factor. Our past achievements have proven this effect. I do not see any alternative for some conflicts – entrepreneurial by way of trial.
Dr Thomas DitgesDITGES Rechtsanwälte Wirtschaftsprüfer Steuerberater, Bonn, Germany
T: +49 228 6046010
DITGES Rechtsanwälte Wirtschaftsprüfer Steuerberater is a well-established law firm in Bonn. DITGES offers strong expertise in the areas of bank law, tax law, corporate law, labour and employment as well as for all methods of dispute resolution.
Dr Thomas Ditges is senior partner at DITGES Rechtsanwälte Wirtschaftsprüfer Steuerberater in Bonn, Germany. As an Attorney-at-Law, CPA, Tax Advisor and Mediator, his expertise covers all areas of commercial dispute resolution and tax law, in matter as well as in procedure.
Published: Litigation & Dispute Resolution, No. 10, Spring 2019 l Photo: alfa27 - stock.adobe.com