Exporting to the United States – A Team Canada Inc Publication

4.10 Litigation in the U.S.

Business litigation is common in the United States. Making sure that your contracts are clear, precise and specific will go a long way toward avoiding disputes. However, sometimes a sound contract is not enough, and having one by no means guarantees that you won't someday end up as either plaintiff or defendant.

Problems that involve litigation often involve matters such as:

• disputes with an intermediary;
• late payments;
• breach of contract; and
• intellectual property issues.

Trying to resolve a dispute through litigation in a U.S. or Canadian court can be very expensive and may not be in your best interest, no matter how justified your position. Often it's much better to have the matter put to arbitration, frequently called "Alternative Dispute Resolution" or ADR.

An alternative to arbitration or litigation is mediation. With mediation, a neutral third party hears your position and that of your opponent, and then tries to find a solution. A mediator's solution isn't binding, however, unless you and your opponent both agree to it.

Mediation and arbitration services are available in the U.S. through the American Arbitration Association; this is a public service, not-for-profit organization that deals with a broad range of disputes. The corresponding Canadian organization is the ADR Institute of Canada.