We strive to prevent disputes, succeeding through thorough and well-considered negotiations with tailor-made contracts, concluded after full consultation and counseling.
You can choose to take some risks and save on the investment in legal counseling. The contracts can become more standardized or poorly defined and clarifying, and there may be deliberate “gaps” in the contract that one expects to fill later. Or lack of awareness that the contracts refer to foreign law or jurisdiction.
In other cases, the parties ‘ relationship or project can evolve so that they go beyond the framework of the contract, without having to extend the contractual basis and take the development into account.
In any case, once a disagreement has arisen, which cannot be resolved by the parties themselves by negotiation, the challenge is to have it resolved as soon as possible in an economically proportional and advantageous manner. If an uncertainty lasts for a long time, it will be disturbing on many levels – also financially, as uncertainty over the outcome of a lawsuit can affect planning and budgeting, and it should be made clear what a trial involves in terms of time, focus, and costs, and consider what the alternative is.
Therefore, it is not always the solution to take a case to court. After the claim form follows a process that involves a series of pleadings, and the setting of a date for the main hearing, if the matter cannot be reconciled, which depending on the place in the court’s calendar, may be far out in the future, while one goes with the uncertainty about who gets the upside. A lawsuit can easily take 2 years from start to finish. Then the judgment can be appealed so that even more time passes in the appeal court.
An issue to consider for foreigners to Denmark is the venue and choice of law and this may be a key issue already when negotiating agreements and when choosing the way of dispute resolve in the case of unclear contractual agreements on this point or no agreements at all.
An alternative to litigation can be arbitration, which is a process that is more governed by the parties, which, among other things, choose the judges, but it is also a process more expensive.
When we counsel on a contractual basis, it is usually relevant to discuss with the parties whether one will choose arbitration instead of the ordinary courts, in the event of disputes,
Another alternative is ADR, alternative dispute resolution, or mediation, which is an informal, cost-effective, and fast-paced dispute resolution model that is often good as the first attempt at clarifying disputes. During a mediation, parties are assisted by an impartial and educated mediator who is hired to help the parties find a common solution. This can also happen after any legal proceedings have been instituted in legal proceedings.
We often recommend trying mediation before moving on to any of the other solutions, but it depends entirely on which preferences you have, and which balance of power exists between the parties.
There are advantages and disadvantages to all models, but we help our clients find the dispute resolution model that will be optimal in their specific cases, and to put it into practice, if that happens.
Whichever approach you end up choosing, you should get an overview of and consider your options early in the process.
Contact Flemming Keller Hendriksen at +45 70 90 90 60 for further information.