Selection of Rational Dispute Resolution Method by Applying New Step-Wise Weight Assessment Ratio Analysis (SWARA)/Racionalaus Gincu Sprendimo Budo Nustatymas Taikant Nauja Kriteriju Svoriu Nustatymo Metoda, Pagrista Nuosekliu Laipsnisku Poriniu Kriteriju Santykines Svarbos Lyginimu

Article excerpt

1. Introduction

Disputes are a reality in every business project. If the parties cannot reach a resolution themselves, expensive, time-consuming legal procedure begins, which severely affects all the participants. Conflict analysis and resolution play an important role in business, governmental, political and lawsuits disputes. The sooner the conflict can be identified and addressed, the higher the percentage of resolution success and the lower the cost. Principles including government laws, industrial self-regulation, and contracts agreed by parties involved should be the basic guidelines to attain a fair and justified solution (Xu and Yuan 2008). If the dispute cannot be settled amicably, the parties can go to court or consider other dispute settlement procedures such as mediation, conciliation, etc. Recently, in countries of both general and continental traditions of law one can note increasingly active interest of researchers in alternative methods of dispute resolution (Bingham 2002; Chan and Suen 2005; Koolwijk 2006; Gebken and Gibson 2006; Gabuthy et al. 2008; Ma et al. 2008).

In global practice, the following alternative dispute resolution methods are considered to be the main ones:

1) Mutual negotiations of parties without mediators.

2) Conciliation procedure, the purpose of which is to achieve that parties end their dispute by a peace agreement; the conciliation procedure may be performed by a person selected by the parties, a judge or other civil servant.

3) Transfer of dispute for solution by an expert selected by the parties, for example, for determination of building defects or amount of remuneration.

4) Examination of dispute with participation of lawyers of the parties and a mediator (mini-trial).

5) Mediation--negotiations between parties with mediation of a selected person.

6) Arbitration--dispute of parties is solved with the help of arbiters (ad hoc arbitration) or the dispute resolution is organised by a permanent institution (institutional arbitration).

The definition of alternative dispute resolution is constantly expanding to include new techniques.

In each particular case analysis of negative and positive features of various dispute resolution methods allows evaluating the perspective of judicial litigation and application of other dispute resolution methods. Such knowledge allows reasonably and deliberately to select the most suitable method for dispute resolution--litigation in court, arbitration, mediation, etc. Private conflict resolution methods, of which the most frequently used are negotiation, mediation and arbitration, are considered as alternative dispute resolution methods. While resolving disputes in any of the methods mentioned by using administrative or organizational leverage, it is sought to affect circumstances and stimulate the dispute parties to agree constructively.

Determination of rational method for dispute resolution is an issue of special relevance. This is so because of a few reasons: first of all, resolution of disputes requires complex legal, technological, engineering, economic, etc. knowledge; secondly, disputes frequently stop development of business projects; thirdly, for disputes parties it is very important that their disputes have a minimum impact on their amicable business relations in future. Problems of rational dispute resolution generally are large and complex, involving many interested parties, often with sharply differing beliefs and values.

It is an extremely important decision of the dispute to justify the choice to find a rational option. Disputes may prevent further cooperation, the implementation of business projects development , etc. Parties, which are included in the dispute, in order to select the most preferable way of a dispute resolution method, are facing with a choice problem, i.e. which procedure is the best for decision-making. …