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pay some compensation to Tahsin since he has suffered damages, then this
will foster NSUs public image. Hence ADR is the better alternative to trial
considering firstly who NSU has to compromise against and lastly after
calculating the opportunity cost associated with a formal trial. Among the
different methods of ADR, negotiation is the best option for NSU.
This is because at present there hasnt been a proper investigation and so
maybe if the parties are given a platform to air their differences without any
outside interference, they might be able to negotiate and come to a
compromise. So if there is any miscommunication or hard feelings then they
can be cleared in a private forum. Also since as mentioned before, despite
having credible grounds for a lawsuit, Waterloo hasnt as yet gone forward to
file a suit which means that even they may be open to informal litigation.
However we cant be certain that Waterloo can be convinced to go for ADR
but still if they were made to believe that NSU is willing to listen to their
grievances and that ADR is better for all the parties than they might consider
it. Negotiation is best for NSU among the other ADR methods because NSU is
the slightly more influential party and can establish their case more strongly.
Mediation confers further time and financial costs on both parties since they
have to hire a mediator and set the rules for mediation. Even Waterloo is less
likely to agree for mediation than negotiation since they know NSU is in a
better position to influence the mediator and manipulate the proceedings
according to their needs. Arbitration is basically an informal trial so it is
lengthy and expensive and should not be chosen if negotiation and
mediation are viable first options.
In essence both parties, NSU and Waterloo, have some leverage on the other.
Waterloos cheerleader sustained an injury and they have a possibly
incriminating phone recording while NSU can state that in sports there is a
voluntary assumption of risk and moreover they are the more dominant
power in Dhaka and can influence proceeding if needed. It is beneficial for
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both to handle this situation in a private and quick forum so that both parties
can compromise and come to a win-win solution. Once NSU can explain
these facts to Waterloo, then rationally Waterloo should agree to proceed
with ADR and specifically negotiation since mediation and arbitration are
more expensive, lengthy and have third parties involved who might not be in
their favor. If negotiation does not work out, NSU can use the time to do a
proper investigation, gather facts in their favor while they wait for Waterloo
to file a lawsuit against them.