Pre-arbitration conciliation resolves most diamond-industry disputes.
Evidence
Models of suit and settlement65 suggest that the closer the plaintiff and defendant’s estimates of the expected outcome of the litigation, the more likely they are to settle. Consequently, to the extent that the required prearbitration conciliation proceedings shed light on the strengths and weaknesses of the parties’ arguments, they would be expected to lead to a high rate of settlement. This is, in fact, observed: 80-85 percent of the disputes submitted to arbitration are settled during the proceeding’s mandatory conciliation phase. — Lisa Bernestein, Opting out of the Legal System, 258
Categorization
- XREF: Connects to the reader’s interest in how information-sharing mechanisms create settlement incentives, in tension with Coleman’s closure logic where shared norms suppress rather than reveal information. — connects to: Mandatory conciliation resolves 85 percent of diamond district disputes — Lisa Bernestein, Opting out of the Legal System, 69; Most diamond industry disputes are resolved without formal adjudication.; The diamond trade sustains an extralegal contractual regime through private arbitration and reputational enforcement. — Lisa Bernestein, Opting out of the Legal System, 278 (+1 more)
Related
- Mandatory conciliation resolves 85 percent of diamond district disputes (similarity 0.90)
- The diamond trade sustains an extralegal contractual regime through private arbitration and reputational enforcement. (similarity 0.85)
- Diamond industry’s private law succeeds by enforcing judgments faster than courts. (similarity 0.83)
- Private arbitration beats courts on speed, cost, and secrecy. (similarity 0.82)
- Reputation, not third-party enforcement, governs diamond market transactions. (similarity 0.82)
- Transaction costs do not explain the diamond trade’s extralegal contracts. (similarity 0.81)
- Arbitrators familiar with industry custom resolve disputes more predictably than judges (similarity 0.80)
- The diamond industry has rejected state law in favor of private governance. (similarity 0.80)
- Private bourse dispute-resolution and secrecy keep the diamond trade extralegal and low-breach. (similarity 0.78)
- Diamond industry norms persist regardless of national legal systems. (similarity 0.78)
Broader Connections
- Most diamond industry disputes are resolved without formal adjudication.
#corroborates(0.95) - The diamond trade sustains an extralegal contractual regime through private arbitration and reputational enforcement.
#expands(0.80) — Lisa Bernestein, Opting out of the Legal System, 278 - Private bourse dispute-resolution and secrecy keep the diamond trade extralegal and low-breach.
#expands(0.75)