Alternative Dispute Resolution, or ADR, has the potential to provide parties with an effective means of settling disputes without litigation. As the structure of ADR continues to evolve, so does the role of the financial expert within ADR processes. By involving a financial expert at the early stages of a dispute, it may be possible to both shorten the time to resolve the matter and reduce the costs of litigation. Financial experts can serve in various roles within the ADR process, from assisting either party with preparation and presentation of a claim to serving as a neutral evaluator.
A steel manufacturing company and its insurer were in a dispute concerning the amount of business interruption lost income sustained by the steel manufacturing company resulting from an equipment breakdown.
Gleason was hired by the steel manufacturing company to be part of an appraisal panel consisting of three financial experts. One expert was chosen by each party along with a consensus “umpire” member. The appraisal panel obtained information through a collaborative effort that involved a site tour of the facilities where the loss occurred and the production of documents from both parties. During the ADR process, the parties were given the opportunity to present a summary of their alternative positions, followed by questions from the panel members.
Gleason worked with the parties and the other panelists to analyze and develop a fact-based calculation of the business interruption losses resulting from the equipment breakdown. The process was efficient for all parties, resulting in a quick resolution of the dispute and a significant reduction in the costs incurred to resolve payment of the claim.
At Gleason & Associates, our experts have recognized credentials in a variety of specialized fields, including accounting and financial analysis, damages assessment, and business valuation. We have experience working as both plaintiff and defendant expert, as well as experience as court-appointed neutral experts in various commercial disputes