ADR: negotiation, mediation, litigation, arbitration. You need to write one letter: In the letter, you will need to advise your client about the strengths and weaknesses of negotiation, mediation, litigation, and arbitration as possible next steps for resolving this dispute.
Client Letter: ADR: negotiation, mediation, litigation, arbitration. You need to write one letter: In the letter, you will need to advise your client about the strengths and weaknesses of negotiation, mediation, litigation, and arbitration as possible next steps for resolving this dispute. Conclude by advising your client which option your client should prefer, and explaining why.
Nisha Moula is your client. In 2018, Nisha decided to give up her career in academia to establish a restaurant and arts hub. Nisha now runs a restaurant called, Shimla Green in the Cultural Quarter in Leicester. Nisha’s restaurant specialises in homemade and vegan food. Her restaurant is a hub for arts and community activism and is frequented by theatre goers. Nisha’s customers include visitors to her restaurant and delivery to the local community. Nisha also has supply contracts to deliver food to a network of local shops and The Curve theatre. Nisha is extremely well regarded in the hospitality sector in Leicester and she has established her business as one of the only strictly vegan providers in the area. She has worked hard to develop a reputation for serving consistently excellent vegan food and as a reliable supplier of high-quality food items. Nisha has established strong ties with all of her commercial clients.
Nisha’s restaurant has become very successful and her business has grown exponentially over the last four years. To support the growth of her restaurant and meet increased demand from the growing market for vegan cuisine and food products, Nisha entered into a contract with a new vegan diary alternative supplier, No Dairy, in October 2020. Receiving the vegan dairy products on time is crucial for the successful running of Nisha’s business and for the financial health and reputation of Shimla Green in the market. The supply contract between Shimla Green and No Dairy provides that No Dairy will deliver weekly orders to Shimla Green on Monday and Wednesday. Timely receipt of these deliveries is crucial to Nisha’s planning and operations and, in particular, to Nisha’s ability to sustainably run her daily business and fulfil her contracts for the delivery of goods to local shop and The Curve theatre.
No Dairy has been a very reliable supplier for Nisha. No Dairy delivered and met the terms of the supply contract for the first two years of the contract without fail. Nisha was very happy with No Dairy, deliveries were always on time and she was able to run her business to the highest of standards. Nisha and No Dairy had established a good working relationship with each other, they enjoyed working together and did so very successfully. In December 2022, No Dairy was uncharacteristically late with deliveries of vegan cheese and oat milk. No Dairy assured Nisha that this was a one-off mistake and promised to deliver within the next week. Nisha agreed to this because of her amicable working relationship with No Dairy. However, No Dairy failed to deliver the products and this had very serious consequences for Nisha’s business as she had to close the restaurant for two weeks and was unable to make deliveries on supply contracts that she has with smaller local businesses in the area and the siginificant contract that she has with The Curve theatre. No Dairy has failed to supply the vegan dairy goods with any consistency since December 2022. As a result of this, Nisha has lost clients and has incurred a number of penalty changes under the supply contracts that she has with local businesses. More importantly to Nisha, Shimla Green’s hard-earned reputation within the local community, as a reliable and unique provider of vegan food, has been damaged especially since Nisha had to cancel a number of large party bookings at very short notice.
On Nisha’s estimate, she has lost over £45,000 through paying penalty charges and as a result of losing contracts with various commercial clients. Nisha has also lost an estimated £20,000 on restaurant income due to cancellations and reputational damage, as her clients have chosen to go elsewhere. This whole process has been extremely stressful for Nisha. No Dairy’s failure to deliver has turned what was a very successful business into a struggling business. Nisha desperately wants to rebuild the reputation of Shimla Green, to rebuild her business and importantly, she wants to recoup her losses from No Dairy, which has clearly breached its supply contracts. Nisha has suffered significant financial losses and does not have the money to spend on resolving this issue with No Dairy.
Your supervising partner has asked you to draft a letter of advice on the various dispute resolution methods available to Nisha as Director of Shimla Green in resolving this matter.
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