To: John Smith, Owner of cell phone solutions of North Dakota
From: John Doe, Regional Manager of Minot branch
Date: 27 July 2013
Subject: Informal Dispute Resolution (IDR) for Contract Renewal Issues
This memo describes the issues with the current contractual renewal for all customers on annual contracts and the resolution of new fees. The current contract does not state that members will automatically be renewed in a certain period of time of non-contact with the company. Currently there are over 200 cases that want to formally resolve the issues and litigate in court. We are looking at possible informal dispute resolutions for each case to avoid large court costs and fees.
1. A new contract to resolve the issue was modified, and reviewed by our lawyers to ensure validity of cancellation and annual contract negotiations. The process for reviewing contracts has been refined for future issues.
2. Due to the small number of requests for in person IDR and the cost of scheduling and associating in-person meeting we are no longer offering in-person IDR.
3. The current costs of IDR have been modified.
A. Appointment $45 per hour
B. Mediator fees $65 per hour
C. Expert Reviewer $100 per hour
4. Current estimate of litigation fees
A. Defense lawyers $125.00 per hour
B. Documentation fees $1,200 per case
C. Court fees $ 350.00 per case
The goal of the informal dispute resolution is to ensure each individual contract and customer agreement is settled with the lowest cost resolution. The state data systems will be evaluated to accurately identify the state of North Dakota’s regulations and resolve differences between our company and the consumer. If we resolve our cases outside of formal litigation we will avoid the cost litigation and court hearings. Handling these cases through informal dispute resolution will also ensure that these cases are handled in a timely manner while the issues and facts are new and fresh.