Online Dispute Resolution: An Amorphous Concept, Yet An Effective Tool Part III

Online Dispute Resolution: An Amorphous Concept, Yet An Effective Tool

Part III

 Part I | Part II | Part IV | Part V

By: Burkley Wombwell

III. Providers of Online Dispute Resolution

Online Dispute Resolution, naturally, exists online. Attempting a general Internet search for ODR providers will provide a potentially overwhelming amount of results. Currently, over 60 academically recognized ORD providers exist.[1] Fair consideration cannot be given to each provider of online dispute resolution, but an examination of a few examples reveals how the process operates.

Major Arbitration Providers and ODR services

In the world of Alternative Dispute Resolution, the American Arbitration Association (AAA), the International Institute for Conflict Prevention & Resolution (CPR), and Judicial Arbitration and Mediation Services (JAMS) are the leading arbitration providers, and each organization has in some way incorporated ODR into their programs.

AAA provides online services for its users, including arbitration clause-building, claim filing, case management, and electronic document transfer.[2] Also, at mediation.org, a division of AAA, an online dispute resolution service is available.[3] AAA offers to conduct the entire mediation process online, with no telephone sessions and no face-to-face meetings if the dispute involves only two parties and neither the claim nor the counterclaim exceeds $10,000.[4] If this process is chosen, a trained AAA staff mediator is assigned to handle the matter from start to finish, the mediator is usually appointed within 48 hours of receipt of the responding party’s agreement to mediate, a flat fee of $200 includes the mediator’s time (no additional costs are incurred), and the mediation is conducted via AAA chat rooms and Instant Messaging (IM).[5] Issues are usually resolved within a 30-day time period, joint discussions between the parties are facilitated by the Mediator in an online chat-room environment, and private discussions between the Mediator and each party can be held individually.[6] Furthermore, the international division of AAA, the International Centre for Dispute Resolution (ICDR) has a manufacturer/supplier online dispute resolution program, which is designed to help manufacturers and suppliers resolve small disputes quickly, fairly, and inexpensively.[7] From start to finish the process is designed to take no longer than 66 days, consisting of two phases, negotiation and arbitration, at the end of which the dispute is either settled or decided by an arbitrator.[8] The filing fee is $500, and should the dispute proceed to arbitration an additional $1000 fee is charged, and similar to AAA’s online mediation, the dispute cannot exceed $10,000.[9] This is a desirable process for manufacturers and suppliers who want to quickly resolve a dispute and continue with business. As the demand for online dispute resolution grows, it is likely that AAA will expand its ODR services beyond small claims and manufacturer/supplier disputes.

The International Institute for Conflict Prevention & Resolution (CPR) has devoted particular attention to online dispute resolution. CPR has acknowledged the impact of the Internet on cross-border transactions and the deficiency of processes for resolving issues that may arise in the context.[10] In response, CPR is involved in several initiatives to leverage ODR in business relationships. First, CPR is working with modria.com, an ODR platform based in Silicon Valley.[11] Launched in 2008, Modria licensed and further developed the ODR platform used by eBay and PayPal to enable its use in other business contexts, which can be adapted to support a wide variety of business to business (B2B) ADR processes.[12] Currently, CPR is working with Modria to develop online processes and rules that can be customized to fit a range of B2B disputes.[13] Second, CPR is participating in the efforts of UNCITRAL Working Group III, which is focused on developing generic rules and procedures governing ODR for business to business and business to consumer transactions internationally.[14] The progress of Working Group III will be covered in greater detail in the section IV “ODR in the International Context.”

To a lesser extent, Judicial Arbitration and Mediation Services (JAMS) has also expanded into the realm of online dispute resolution services. Like AAA, JAMS provides electronic submission of cases and an electronic filing system.[15] Also, JAMS provides a Virtual Conference Room, so that offsite parties can participate in dispute resolution, particularly the hearing process, through a web conference.[16] Although JAMS currently does not offer an official ODR procedure, it is likely that as their competitors expand into the arena, JAMS will follow.

 Other ODR providers

The adoption of ODR services by major ADR service providers should not come as a surprise, especially considering the assortment of providers solely dedicated to ODR that exist on the Internet. As mentioned before, over 60 providers of ODR currently exist. Although these ODR services have a common goal in mind, they have slight variations and offer distinctive features.

SmartSettle, for example, offers an online negotiation system centered around collaboration, saving time, and preserving relationships.[17] SmartSettle can cover a large array of disputes and provides four products, each tailored to meet the user’s particular needs.[18] SmartSettle Observer (Lite), designed for trainees, observers and parties in online cases, has all the features needed for evaluation but may not be used commercially except in an online case created and facilitated by a licensed user of SmartSettle Pro.; however it can be used in two commercial cases online without charge.[19] SmartSettle Decider is a multivariate stand-alone support system, suited for solving complex problems for individuals, and it can help the user clarify the issues and compare alternatives in complex situations.[20] SmartSettle Negotiator is designed for professional negotiators; it provides secure real-time communication with other Negotiators and generates optimal solutions based on the preferences of parties located around the world.[21] Finally, SmartSettle Pro, the flagship product for facilitators, provides a tool for secure multi-party negotiations and is designed for simultaneous facilitation of any number of cases.[22] SmartSettle prices can range from $700 to $2000, however SmartSettle Pro is priced upon request.[23] With a focus on e-negotiation, SmartSettle is a good example of a well-developed online disputes resolution provider.

Another provider, Juripax, “the worldwide leader in online mediation software,” focuses on the ODR system and the technology behind dispute resolution.[24] Juripax is ideally suited for fully online proceedings, but can also supplement and be integrated into meeting-based procedures.[25] With 10 years of experience, Juripax allows for streamlined textual, asynchronous communication between the parties that is always transmitted through the mediator.[26] The process consists of three phases, part one (preparation, diagnostics, mediator evaluation), part two (mediation), and part three (resolution).[27] Like SmartSettle, Juripax offers four editions of its services: Juripax Roleplay (free online demo), Juripax Community (introduction package), Juripax Mediator (single user), and Juripax Professional (multi user and case administration).[28] The system is based out of the Netherlands, with agents in Germany and the United States, and prices range from 49 Euros to 1299 Euros, with options to add on services.[29]

VirtualCourthouse, yet another example, is a “web-based combination of multimedia technologies and business processes, integrated with a customer-friendly user interface. [The] system replicates the current process of dispute resolution in an online environment, removing the constraints of time, expense, and distance…”[30] To file a case, the parties and representatives submit a brief description, then select 3 or more mediators/arbitrators, rank them, and send the list to the opposing party along with an invitation to participate in ADR through VirtualCourthouse.[31] Once the process begins, the parties submit their case online, schedule a meeting or video conference, and use the provider’s secure and confidential asynchronous messaging system.[32] Filing a case is $50 per party, an online decision and simple online neutral case evaluation of an hour or less each cost $300, and beyond that fees are assessed at the neutral’s published hourly rate.[33] One interesting feature offered by VirtualCourthouse is “Mediator Marketing,” which “provides the mediation community with the tools to develop a successful strategy to increase caseloads and transition to the Internet… The only online dispute system that provides a marketing utility and a selection component. Not only can a mediator create a wide Internet presence but is also available for selection by a party who starts a case using VirtualCourthouse,” selection and marketing begins at $5 per month.[34] The main focus of VirtualCourthouse is “fair, fast, and reliable” dispute resolution, but marketing and case management services for mediators are also available.

Although each supplier has different qualities and features, the common goal among ODR providers is to adapt to the customer’s needs and provide a dispute resolution mechanism that can be fully utilized online, enhancing efficiency, economy, and satisfaction.