The Globalization of Business and the Dispute Resolution Environment

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The Globalization of Business and the Dispute
Resolution Environment

• by
• Robert F. Ruyak
• Chairman and CEO

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The Global Business Environment

• Acceleration in the Globalization of Businesses
  and Markets
• Growing Interdependence of National and Regional
  Economies
• Rise of new Developing Economies
• Enabled by new Technologies information,
  communication, biotech, transportation, energy
• Has driven multinational corporate expansions,
  joint ventures, partnerships and contractual
  relationships

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The Global Business Environment

• Challenges
• Projects, and ventures more complex with greater
  likelihood of failures or disputes
• Investments larger and less secure
• Effects of laws, regulations and government
  interventions less predictable
• Viability of partners, suppliers, participants
  and customers less certain
• Agreement performance and enforceability more
  risky
• Resolutions more difficult

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The Global Legal Environment

• Developing Countries(China, India, Brazil)
• -Unpredictable
• -Establishing new legal and regulatory schemes
• -competition, intellectual property,
  liabilities
• -operation, ownership, taxation and legal
  status of multinationals
• Developed Countries
• -Increased regulation and government
  intervention
• -Private litigation (private risk funds)
• -antitrust, environmental, product liability,
  investor losses

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The Global Dispute Environment

• Future growth of world economy is dispute
  dependent
• --NOT a negative--necessary element of progress
• --So Long As a process for efficient, timely,
  satisfactory, fair resolution is available
• --Legal profession must address and create new,
  acceptable solutions
• --To meet the future demands of these more
  complex regulatory and commercial conflicts

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Challenges for the Global Legal Profession

• Challenges for Firms and Legal Departments
• -Predict and Plan for Disputes
• -Control Costs and Time Horizons
• -Manage Multi-venue, Trans-national matters
• -Obtain Acceptable, Predictable, Timely
  Resolutions
• -All Consistent with Business Strategy

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Creating a New Dispute Resolution Environment

• Dispute Management Streamlining
• Anticipation
• Consolidation
• Prioritization
• Process
• Dispute Resolution ADR
• Negotiated and Contractual
• Legally Mandated
• Regulatory Agency Required

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Dispute Management

• Conflict Identification, Planning and Strategy
• Early Engagement
• Scope of Dispute Agreements
• Mutual Information Exchange
• Discussion and Negotiation
• Mediation and Arbitration
• Scope of Litigation Agreements

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Dispute Resolution ADR

• Negotiated and Contractual
• Parties
• Participants
• Legally Mandated
• Pre-court Access
• Joinder and Prescriptions
• Regulatory Agency Required
• Approval Process
• ENV, SEC, FERC, etc.

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Future Role of CPR

• Focal Point for the Global Legal Profession
• Thought Leader for Innovation
• Advocate for Creative Change
• Source of a Global Panel of Neutrals

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The Globalization of Business and the Dispute
Resolution Environment

• by
• Robert F. Ruyak
• Chairman and CEO