Drafting Game Rules to Minimize Litigation
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This document discusses strategies for drafting game rules and contracts to minimize litigation. It recommends focusing on the essential elements of any agreement: the parties, subject matter, time for performance, and price. Drafting should address potential business and legal risks upfront by including provisions for risk mitigation, dispute resolution procedures, and a clear path to resolution before disputes arise. The goal is to establish rules of engagement that keep parties at the negotiating table and avoid entrenched positions.
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Drafting Game Rules to Minimize Litigation
- 1. Drafting Game Rules to Minimize Litigation Litigation & Corporate Counsel Asia Summit 2013
- 3. Endless Cycle of Litigation
- 5. Voltaire
- 6. Spider-Man
- 7. Opportunity to Make the Rules
- 12. Missing the Bigger Picture
- 14. Already have a Dispute
- 15. If the parties have a dispute that they are unable to resolve themselves.... - Typical Arbitration Clause
- 16. Business Resolution Already Failed
- 17. Parties are Already Taking Positions
- 18. Contract Roadmap
- 20. Opportunity to Draft the Game Rules
- 21. Back to Basics
- 22. Back to Law School
- 24. 1. Parties 2. Subject 3. Time 4. Price
- 28. Contract Price
- 29. 1. Parties 2. Subject 3. Time 4. Price
- 30. Not Abstract Legal Concepts
- 32. Law Students’ Point of View
- 33. Lawyers’ Point of View
- 35. Anahad O’Connor, Cracking Under the Pressure? It's Just the Opposite for Some September 10, 2004, The New York Times In studies, researchers have found that perhaps the only time pessimists thrive is when they become lawyers... If you're drawing up a contract, the ability to see every foreseeable danger is something that goes along with pessimism...
- 36. Business Risk
- 38. Extract Value from the Contract
- 39. Disrupt Ability to Extract Value
- 40. 1. Parties 2. Subject 3. Time 4. Price
- 42. Subject Matter Risks Meet Requirements Perform as Expected Conform to Specifications Intellectual Property Rights
- 43. Time Risks Late Delivery Late Payment Early Termination
- 44. Price Risks Inflation Best Price Value for Money Unamortized Costs Currency Fluctuation
- 45. Business Risk
- 46. Legal Risk
- 47. Legal Risk
- 48. Legal Risks are Business Risk
- 49. Disrupt Ability to Extract Value
- 50. Risk Mitigation
- 53. Business Resolution Before Dispute
- 54. 1. Parties 2. Subject 3. Time 4. Price
- 55. Party Risk Mitigation Quarterly Business Reviews Financial Analysis Key-Personnel Retention
- 56. Subject Matter Risk Mitigation Representations and Warranties Service Level Agreement Model Acceptance Testing Qualification
- 57. Time Risk Mitigation Service Level Agreement Model Late Delivery Consequences Early Termination Schedule Take-Or-Pay Liquidated Damages
- 58. Price Risk Mitigation Service Level Agreement Model Early Termination Costs Quarterly Price Review Competitive Sourcing Best Price Guarantee
- 59. Path to Resolve Disputes
- 60. Procedures to Divert Disputes
- 61. Business Resolution Before Dispute
- 62. Choosing Your Battle Lines
- 64. Keep Them Playing at the Table
- 65. Keep Everyone Playing Peacefully
- 66. Write Your Own Rules
- 67. Drafting Game Rules to Minimize Litigation Litigation & Corporate Counsel Asia Summit 2013
- 68. About the Author Eric Pesik is the Associate General Counsel and Compliance Officer at Seagate Singapore International Headquarters Pte Ltd. This work represents the opinions of the author alone, and not the opinion his employer. http://www.linkedin.com/in/ericpesik/ Image Acknowledgments All of the images used in this work are the property of their respective owners. All image sources are acknowledged in the pages that follow. If you wish to reuse any of the images from in this presentation, you must obtain the original image from the original source and comply with any licensing restrictions. Creative Commons Attribution License Except for the images used in this presentation, you are free to share, copy, distribute, and transmit this work; to remix or adapt this work; and to make commercial use of this work, under the condition that you must attribute this work to the author (but not in any way that suggests that he endorses you or your use of this work). http://creativecommons.org/licenses/by/3.0/ Copyright © 2013 Eric Pesik
- 69. Monopoly by Mike Fleming Flickr Creative Commons Attribution License http://www.flickr.com/photos/flem007_uk/3168012226/ Arcade Rules by David Goehring Flickr Creative Commons Attribution License http://www.flickr.com/photos/carbonnyc/269389847/ Motor Racing Board Game by Puuikibeach Flickr Creative Commons Attribution License http://www.flickr.com/photos/puuikibeach/6913255742/ Harrington Signing Contract by Cushing Memorial Library and Archives Texas A+M Flickr Creative Commons Attribution License http://www.flickr.com/photos/cushinglibrary/3738556077/ Atelier de Nicolas de Largillière, portrait de Voltaire Wikimedia Commons http://commons.wikimedia.org/wiki/File:Atelier_de_Nicol as_de_Largilli%C3%A8re,_portrait_de_Voltaire,_d%C3 %A9tail_(mus%C3%A9e_Carnavalet)_-002.jpg 2006 Spider-Man Ornament by JD Hancock Flickr Creative Commons Attribution License http://www.flickr.com/photos/jdhancock/4234966590/ Monopoly by John-Morgan Flickr Creative Commons Attribution License http://www.flickr.com/photos/aidanmorgan/5588594181/ Business people in a meeting by Victor 1558 Flickr Creative Commons Attribution License http://www.flickr.com/photos/76029035@N02/6829506735/ Board game time with Josh and Spenser by Chelsea Hicks Flickr Creative Commons Attribution License http://www.flickr.com/photos/seafaringwoman/7183600123/ Monopoly by Jeramey Jannene Flickr Creative Commons Attribution License http://www.flickr.com/photos/compujeramey/22023732/
- 70. Meeting by Voka Kamer van Koophandel Limburg Flickr Creative Commons Attribution License http://www.flickr.com/photos/vokakvklim/4522913512/ James, I think your cover's blown! by Ludovic Bertron Flickr Creative Commons Attribution License http://www.flickr.com/photos/23912576@N05/29621 94797/ Office.com and Office Web App Media Elements Used with permission from Microsoft http://office.microsoft.com/en- 001/images/results.aspx?qu=MP900390111#ai:MP90 0390111| Axis and Allies by James Lee Flickr Creative Commons Attribution License http://www.flickr.com/photos/jronaldlee/6413610641/ Typical Arbitration Clause In contracts everywhere Meeting by Voka Kamer van Koophandel Limburg Flickr Creative Commons Attribution License http://www.flickr.com/photos/vokakvklim/4522283313/ Placing the go stone by Luis de Bethencourt Flickr Creative Commons Attribution License http://www.flickr.com/photos/luisbg/2094497611/ Map of Jalan Bukit Bintang, 55100 Kuala Lumpur Google Maps http://goo.gl/maps/0c56W Risk by Bien Stephenson Flickr Creative Commons Attribution License http://www.flickr.com/photos/benstephenson/27298596/ Monopoly by Jeramey Jannene Flickr Creative Commons Attribution License http://www.flickr.com/photos/compujeramey/22023732/
- 71. Case Briefing by David Ortez Flickr Creative Commons Attribution License http://www.flickr.com/photos/davidortez/5350562485/ Classroom by velkr0 Flickr Creative Commons Attribution License http://www.flickr.com/photos/velkr0/3472576304/ Contract for 1000 per week by Casey Konstantin Flickr Creative Commons Attribution License http://www.flickr.com/photos/sercasey/503706091/ Candyland by John-Morgan Flickr Creative Commons Attribution License http://www.flickr.com/photos/aidanmorgan/5589183352/ Life by Wil Folsom Flickr Creative Comons http://www.flickr.com/photos/willfolsom/5134869124/ The Hour by BigBirdz Flickr Creative Commons Attribution License http://www.flickr.com/photos/bigbirdz/4352531157/ Office.com and Office Web App Media Elements Used with permission from Microsoft http://office.microsoft.com/en- 001/images/results.aspx?qu=MP900423612 De literarum obligationibus (Of the obligation litteris) by Yale Law Library Flickr Creative Commons Attribution License http://www.flickr.com/photos/yalelawlibrary/5495035219/ Contract for 1000 per week by Casey Konstantin Flickr Creative Commons Attribution License http://www.flickr.com/photos/sercasey/503706091/ Classroom by velkr0 Flickr Creative Commons Attribution License http://www.flickr.com/photos/velkr0/3472576304/
- 72. Confident businesspeople by Victor 1558 Flickr Creative Commons Attribution License http://www.flickr.com/photos/76029035@N02/6829325 255/ 2006 Spider-Man Ornament by JD Hancock Flickr Creative Commons Attribution License http://www.flickr.com/photos/jdhancock/4234966590/ Cracking Under the Pressure? It's Just the Opposite for Some by Anahad O’Connor September 10, 2004, The New York Times http://www.nytimes.com/2004/09/10/health/10stress.htm l?pagewanted=all&_r=0 Craps Dice Advertise Tylenol with Codeine by Woodleywonderworks Flickr Creative Commons Attribution License http://www.flickr.com/photos/wlwworks/4238080094/ The Godfather directed by Francis Ford Coppola 1972 Paramount Pictures Offical Website http://www.thegodfather.com/ Houses on Coins by Images of Money Flickr Creative Commons Attribution License http://www.flickr.com/photos/59937401@N07/5474806608/ House on Fire by Images of Money Flickr Creative Commons Attribution License http://www.flickr.com/photos/59937401@N07/5857234643/ Candyland by John-Morgan Flickr Creative Commons Attribution License http://www.flickr.com/photos/aidanmorgan/5589183352/ Life by Wil Folsom Flickr Creative Comons http://www.flickr.com/photos/willfolsom/5134869124/ The Hour by BigBirdz Flickr Creative Commons Attribution License http://www.flickr.com/photos/bigbirdz/4352531157/
- 73. Office.com and Office Web App Media Elements Used with permission from Microsoft http://office.microsoft.com/en- 001/images/results.aspx?qu=MP900423612&ex=1#ai: MP900423612 Monopoly Money by John-Morgan Flickr Creative Commons Attribution License http://www.flickr.com/photos/aidanmorgan/558918494 4/ Office.com and Office Web App Media Elements Used with permission from Microsoft http://office.microsoft.com/en- 001/images/results.aspx?qu=MP900178584&ex=1#ai: MP900178584| Office.com and Office Web App Media Elements Used with permission from Microsoft http://office.microsoft.com/en- 001/images/results.aspx?qu=MP900178584&ex=1#ai:M P900178584| Monopoly Time by Dustin Askins Flickr Creative Commons Attribution License http://www.flickr.com/photos/dustinaskins/1401246474/ House on Fire by Images of Money Flickr Creative Commons Attribution License http://www.flickr.com/photos/59937401@N07/58572346 43/ Office.com and Office Web App Media Elements Used with permission from Microsoft http://office.microsoft.com/en- 001/images/results.aspx?qu=MP900407410&ex=1#ai:M P900407410 Magically Shift the Maze to Reach Your Goal by David Goehring Flickr Creative Commons Attribution License http://www.flickr.com/photos/carbonnyc/1392828721/ Chutes and Ladders by Ben Husmann Flickr Creative Commons Attribution License http://www.flickr.com/photos/benhusmann/3120095949/ 40+118 POW!! by Bark Flickr Creative Commons Attribution License http://www.flickr.com/photos/barkbud/4385145755/
- 74. Life by Wil Folsom Flickr Creative Comons http://www.flickr.com/photos/willfolsom/5134869124/ The Hour by BigBirdz Flickr Creative Commons Attribution License http://www.flickr.com/photos/bigbirdz/4352531157/ Office.com and Office Web App Media Elements Used with permission from Microsoft http://office.microsoft.com/en- 001/images/results.aspx?qu=MP900423612&ex=1#ai:M P900423612 Magically Shift the Maze to Reach Your Goal by David Goehring Flickr Creative Commons Attribution License http://www.flickr.com/photos/carbonnyc/1392828721/ Chutes and Ladders by Ben Husmann Flickr Creative Commons Attribution License http://www.flickr.com/photos/benhusmann/3120095949/ 40+118 POW!! by Bark Flickr Creative Commons Attribution License http://www.flickr.com/photos/barkbud/4385145755/ Axis n Allies Aircraft Carrier by Ivan Salas Flickr Creative Commons Attribution License http://www.flickr.com/photos/skalasinc/356614149/ Candyland by John-Morgan Flickr Creative Commons Attribution License http://www.flickr.com/photos/aidanmorgan/5589183352/ Space Marines by Himitsu Monban Flickr Creative Commons Attribution License http://www.flickr.com/photos/monban/3422589888/ The Game of Life by Djprybyl kathryn Flickr Creative Commons Attribution License http://www.flickr.com/photos/prybylphotos/2397671520/
- 75. Scrabble by Betsssssy Flickr Creative Commons Attribution License http://www.flickr.com/photos/betsssssy/628133114/ Harrington Signing Contract by Cushing Memorial Library and Archives Texas A+M Flickr Creative Commons Attribution License http://www.flickr.com/photos/cushinglibrary/3738556077/ Monopoly by Mike Fleming Flickr Creative Commons Attribution License http://www.flickr.com/photos/flem007_uk/3168012226/