The July 28 issue of The National Law Journal has an interview with Frank Sherer, general counsel for Timex Corporation. The Journal reports one way Sherer helps prevent litigation: Timex contracts may require that before either side may file suit against the other, either the general counsel or the CEOs of both sides must meet about the dispute. Here's how the Journal reports it:
"Timex avoids most litigation through aggressive intervention at the early stage of legal disputes, said Sherer. No fan of either litigation or arbitration, Sherer pushes for mediation clauses in major contracts. He prefers a requirement that the general counsel of both sides (and the CEOs, for more high-stakes cases) meet to discuss the dispute before either party may file a lawsuit."
The article notes that several years ago, the requirement facilitated a prelitigation settlement with a component manufacturer over a major product defect dispute.
Posted by ajlevy at August 10, 2003 1:39 PM