Disputes effectively is crucial. The role of an in-house lawyer extends beyond mere legal advice; it involves strategic thinking, understanding business priorities, and facilitating resolutions that align with the company's goals.
At Disputes Day, Nikki Edwards from Howard Kennedy joined senior in-house lawyer Laura Gale on stage to share their insights into the psychological traps that get in the way of settling disputes. They also hosted an interactive workshop where in-house lawyers shared their dispute "blockers" and "unblockers". This article was inspired by this interactive workshop. Huge thanks to everyone who participated in the workshop at Disputes Day and so generously shared their experiences with disputes.
This article explores common blockers that prevent settling disputes and offering strategies to overcome these challenges, providing actionable insights for in-house lawyers to support their businesses.
Common blockers to resolving disputes smoothly:
What are some of the things that in-house lawyers frequently see blocking smooth dispute resolution? Here is the list of blockers that in-house lawyers with us about blockers they've seen in their businesses:
- Emotional reactions: Emotions such as anger and panic can cloud judgement and hinder rational decision-making. It's essential to manage these emotions to focus on practical solutions.
- Lack of process focus: Without a structured process, disputes can become chaotic. A clear process helps in managing timelines and expectations.
- Financial constraints: Limited budgets can restrict the options available for dispute resolution, making it challenging to pursue certain strategies.
- Internal blame and vested interests: Blaming individuals or having personal stakes in the outcome can prevent objective decision-making and resolution.
- Business priorities: Sometimes, disputes are not prioritised due to other pressing business needs, delaying resolution efforts.
- Public Opinion and PR concerns: Negative publicity can spiral fast and result in businesses losing control (see "emotions" below!). In-house lawyers are rarely best placed to lead on the PR advice but can play an important role, especially alongside comms professionals
- Authority gaps: Some in-house lawyers shared that, when lawyers below the General Counsel level attempt to advise the C-suite, there can be a perceived "authority gap". This can lead to miscommunication and ineffective decision-making, with important messages not landing or being taken insufficiently seriously.
How in-house lawyers can help to unblock and settle in-house disputes
Building relationships and effective communication
With authority gaps being one of the key blockers to dispute resolution, building relationships across the business as an in-house lawyer becomes even more important. By focusing on creating strong relationships with decision makers and stakeholders before disputes arise, will help build trust when disputes do crop up. This will lead to smoother negotiations and settlements.
During the dispute settlement process, make sure you are regularly and effectively communicating to keep all stakeholders informed and aligned. With heightened emotional states and tension, now isn't the time to showcase your expert grasp of the law – make sure you're using clear, layman's terms to explain complex legal points.
Being empathetic by focusing on facts and removing the winner-loser mindset
As mentioned, emotions can run wild during disputes. Letting these emotions drive the process can cloud judgements and hinder the resolution. Emotions are usually at the heart of blocked disputes resolutions.
Empathy and understanding can be vital for in-house lawyers working on disputes. Provide support for those involved in the dispute and allow the business to express their feelings in a safe environment. By expressing their feelings outside of the resolution process, it can lead to more constructive discussions and solutions – very often just being heard and acknowledged is the need that a claimant has in a claim.
Similarly, when working on disputes give yourself the chance to step outside the immediate conflict to understand the underlying interests of all parties. This can help in finding a middle ground and crafting solutions that are acceptable to everyone involved.
Shifting the focus to facts, not emotions, and trying to remove the winner-loser mindset can help to unblock dispute discussions. Moving away from winning the dispute to finding a mutually beneficial resolution can reduce resistance and foster cooperation.
Make a plan for handling the dispute
There is only so much you can plan ahead when it comes to handling disputes, but when it does arise, get a plan in place.
When you're planning how to resolve a dispute, be realistic. Make a practical assessment of the outcomes and consequences, including the financial and commercial implications of not settling.
Internal cohesion is vital to avoid blocked disputes so ensure the business has a unified approach to the dispute. This includes maintaining internal support for the chosen strategy and everyone has a clear understanding of the consequences of decisions.
Leave room for creative solutions
As important as a unified plan is, make sure you leave room to flex and change directions if needed.
Encouraging a growth mindset and exploring creative solutions might not be immediately obvious and can seem low in the priorities. However, when you're completely stuck in dispute resolution, a creative solution might be just what you need.
Some solutions could include offering payment plans or other concessions that do not compromise the company's core interests. Similarly, when you're at a real deadlock, bringing in independent experts or mediators can provide a fresh perspective and help with breakthroughs.
In-house lawyers play a pivotal role in managing disputes. By understanding the common blockers and employing strategic unblockers, they can effectively support their business in navigating disputes, ensuring that resolutions are aligned with the company's broader objectives. This proactive approach not only resolves conflicts but also strengthens the company's resilience in the face of future challenges.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
