Strategies for effective dispute resolution

Are you having difficulty resolving a dispute? 

Periods of economic volatility often give rise to increased financial disputes. These disputes can be fallout from business partnerships, relationship breakdowns, succession disputes or any case involving shared assets. In our experience, these conflicts typically stem from misaligned expectations, vague agreements, or contested asset valuations. With property values surging, resolving disputes over jointly-owned assets or contested inheritances is particularly important.

Unresolved disputes can lead to lengthy litigation, mounting financial pressures, and emotional turmoil. It is in the interest of all parties to adopt a considered, structured approach to dispute resolution that aims for equitable outcomes and, where possible, preserves relationships.

Below we explore several effective pathways for resolving disputes, each suited to different types of conflict and desired outcomes.

Mediation and facilitation

Mediation can serve as a valuable first step, allowing parties to engage in open dialogue with a neutral third party who can facilitate understanding and compromise. It provides a structured, yet informal setting where all parties can express their concerns, clarify misunderstandings, and explore potential solutions. The mediator/facilitator doesn’t make decisions but instead facilitates open communication and helps guide the parties toward a mutually acceptable outcome.

However, mediation isn’t always successful, especially when one or both parties are unwilling to compromise or when legal or factual disagreements are too significant to bridge.

Special referees and experts in commercial disputes

A special referee is an independent expert appointed to answer a question related to their area of technical expertise. These are typically highly technical issues that can be difficult for courts to fully unpack without specialist input.

For example, a special referee can help determine whether a building defect stems from poor design or faulty workmanship. Or they might determine whether a business was solvent at a specific point in time.

A well-considered referee report can break a deadlock by offering an impartial view of the facts. This insight can encourage both parties to reassess their stance and potentially find common ground. In some cases, a referee’s findings may even prompt renewed negotiations, where previously the parties were preparing for prolonged litigation.

Beyond improving the quality of decision-making, using a special referee can also lead to significant time and cost savings.

In recent years, we have observed an increasing number of commercial disputes where the resolution of the dispute required special referees or experts. This is particularly common in the real estate and construction sector.

Dispute resolution for deceased estates

Disputes involving deceased estates can become particularly complex when the estate includes multiple companies, high-value property or contested wills. These matters often involve a web of legal, financial and emotional considerations, especially where beneficiaries, executors, and other interested parties have differing interpretations of the Will or concerns about its validity. In such cases, standard estate administration may not be enough, and resolving the dispute may require a more structured or specialised approach.

When traditional estate lawyers have reached an impasse or the issues are too complex for general estate practice or may involve complex commercial and tax issues, engaging a disputes expert with expertise in commercial, property, and estate litigation can help untangle the matter.

Whether it's winding up corporate structures, dealing with claims of undue influence, unclear corporate holdings, or disputes over entitlements, a specialist experienced in complex estate matters can offer strategic guidance to achieve resolution and assist with the orderly realisation and allocation of the deceased estate.

Section 66G applications for property disputes

The various Real Property Acts in each jurisdiction, including Section 66G in NSW, provide a legal mechanism for resolving disputes among co-owners of a property. These disputes often arise in corporate or partnership contexts when the co-owners can no longer agree on how to manage or divide the property.

This commonly arises in business disputes where parties have fallen out, but assets such as land or commercial premises remain jointly owned. When negotiations stall and there’s no clear path forward, Section 66G allows the court to appoint an independent trustee or receiver to sell the property and distribute the proceeds, effectively bringing the deadlock to an end.

These applications are particularly useful in corporate and partnership disputes where relationships have broken down and attempts to reach a commercial agreement have failed. Whether it’s a family-run business, a joint venture, or an investment partnership, this provision can provide a circuit-breaker when parties are unable or unwilling to cooperate. Engaging a disputes team early can help navigate the procedural requirements and present a compelling case for the appointment of a trustee, ensuring the matter is resolved efficiently and fairly.

Embracing win-win solutions

It is essential for parties embroiled in disputes to seek out, wherever possible, a “win-win” outcome. Prolonging a dispute often leads to unnecessary and heightened costs, as well as associated stress.

FOR MORE INFORMATION

Reach out to RSM today to start a conversation about how we can assist your dispute resolution.