The concept of neutral evaluation may be summarized as a process through which the parties may obtain an initial expert and neutral assessment of the merits of their respective cases at the very initial stage of a dispute, as well as an independent recommendation regarding settlement options.
Neutral evaluation, therefore, intends to:
- restore or facilitate communication between the parties on the basis of the analysis and recommendations of the expert evaluator;
- obtain a highly specialized neutral analysis of each particular dispute submitted to this process;
- help the parties reach lasting agreements.
For whom?
Neutral Evaluation is suitable for any business having a dispute with another regarding their contractual rights and obligations.
The Process
The process is initiated as a result of a joint filing by the parties submitting to neutral evaluation. Once appointed, the evaluator will set the date for the parties to submit documentation and written arguments.
The oral hearing does not generally take the breadth and dimension of a conventional arbitration hearing. It is less formal and there is almost never any live expert testimony introduced. It does, however, provide an opportunity for the parties to comment further on the written arguments presented beforehand. Given the fact that this technique is generally utilized at the very early stages of a dispute, the oral hearing usually becomes the first time that the disputants meet face to face with their respective counsel.
Generally, the neutral evaluator will solicit written conclusions once the parties have been exposed for the first time to the arguments of the other regarding perceived facts and applicable law. Within a specified time period from the date of the submission of written conclusions, the evaluator presents a written report commenting on the merits of each party’s case. This report also contains the neutral's own recommendations regarding a settlement of the dispute.
Confidentiality and Impartiality
All evaluators must be impartial and they must document their impartiality with regard to the parties involved.
Who is the evaluator?
The evaluator is the professional who will hear the parties' arguments, but he is not empowered to render a decision enforceable upon the parties.
Evaluators are professionals engaged in diverse professional activities. Evaluators may be licensed practicing attorneys or not. This is the parties' choice entirely. However, if the parties expressly wish an analysis of legal issues or consequences, then the evaluator will be a practicing attorney.
Regarding the report submitted by the evaluator to the parties, each professional will apply, at a minimum, the standards of practice governing his profession.