Attempt To Achieve An Agreement Or Compromise In Dispute

September 12, 2021

On the other hand, statements made during compromise negotiations on other disputed claims are not admissible in subsequent criminal proceedings when they are proposed to prove the liability, invalidity or amount of those claims. When private parties enter into compromise negotiations, they cannot protect themselves from the further use of statements in criminal matters by means of a private injunction. Failure to ensure protection against post-use could lead the parties to refuse to admit fault, even if this would allow them to settle the private matter favourably. Such a chill in settlement negotiations would run counter to the policy of Article 408. In practice, Federal Electric highlights the challenges of developing pre-litigation arbitration clauses, which work effectively when multiple claims arise between multiple parties in multiple contracts. These challenges are particularly common in the construction industry, where general contractors and owners must structure and manage a complex network of contracts from engineers, subcontractors, suppliers and other specialized suppliers. In these circumstances, the parties should pay particular attention to dispute settlement clauses in all related contracts, in order to ensure the possibility of consolidation or adhesion in the event of multiple claims between several parties. Otherwise, it could not only result in delays and additional costs in the proceedings, but also, as in the case of Federal Electric, undermine the overall intent of an arbitration proceeding. In reconciling a compromise, it is important that there is a sense of reciprocity in which each party abandons something of equal value or importance. A sense of fairness in the process of giving and receiving will keep the negotiation open and constructive. Practical and balanced offers, which move the litigation towards the conclusion, will increase the level of cooperation with a view to a compromise solution. After federal Electric failed to settle its rights through mediation, federal electric requested that the Ontario Superior Court of Justice order that its claims be submitted to arbitration under an arbitration agreement in the subcontract.

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