by Atluri Ramesh

Created on: May 06, 2011   Last Updated: July 22, 2011

In bilateral action, both parties participate in the dispute resolution process. The bilateral action requires cooperation of the disputing parties and means that the parties must agree on the dispute resolution process and its outcome. In other words, the bilateral action is a dispute negotiation process. During the negotiation, the parties resolve their own dispute. The role of both parties is more required rather than a third party’s intervention. Negotiation is a voluntary dispute resolution process and hence both parties establish their own process to settle the dispute. The parties to the agreement will not accept any third party’s assistance in any mode of discussion.

The parties of agreement may find it difficult to perform the agreement. Such non performance will require dispute resolution through various methods.  Most agreements also prescribe the dispute resolution process in stages without resorting to any judicial process. Accordingly, negotiation is established, which is one type of initial resolution process so that the parties themselves resolve their dispute through bilateral action.

Alternative Dispute Resolution is also known as external dispute resolution for which the both parties come to an agreement without any litigation.  The concept of Alternative Dispute Resolution is widely accepted among the general pubic and legal process. Perhaps the popularity of the concept is caused by an increase of caseloads in traditional courts. Besides, the concept involves fewer costs than litigation. The dispute resolution can be achieved through negotiation, mediation, conciliation and arbitration. The goal of the Alternative Dispute Resolution is to settle the dispute beyond the judicial mechanism. As the Bilateral Action is associated with negotiation, the parties can settle their issue and no third party is involved.

The dispute can be resolved through private or public process.  The processes, like unilateral action, bilateral action, mediation and arbitration, are termed as private processes.  As far as the public process, the litigation is defined as a public process. The aggrieved party can create dispute resolution strategy through several available methods of dispute resolution. Initially, the party may choose bilateral action through negotiation to reach a favorable solution. In case the party fails in negotiation, the party move towards mediation and thereafter to the litigation process.

The aggrieved party may file a complaint to start the litigation process, and the opposite party accepts the bilateral action. During the Bilateral Action, both parties will participate and both parties will decide the dispute. It means negotiation is a bilateral method of dispute resolution. Before resorting to other methods including litigation, Bilateral Action is the easiest and cheapest method to resolve a dispute between two parties.

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