Multi-party disputes are not as common as two-party disputes. However, there are some cases where individuals and organizations have common interests in that dispute. At that time, individuals and organizations with common rights and interests in a dispute tend to gather, jointly litigate the party with opposing rights and interests and appoint one or a few representatives to negotiate with the other party.

Even so, is it really effective to litigate together and appoint only a few representatives for dispute settlement? By this article, we would like to analyze a few points about negotiation in case the dispute has plenty of parties.

1. Some common disputes that have plenty of parties

Multi-party disputes are disputes that have more than 2 parties. For example:

– The enterprise has dispute over debt collection with plenty of partners, customers at the same time in commercial business activities;

– Disputes over cooperation agreements between an enterprise and many different individuals and organizations.

Multi-party disputes often occur in the fields of commercial business, civil, labor or consumer’s rights protection.

2. Is it effective to litigate together and appoint only a few representatives for dispute settlement?

In fact, in multi-party lawsuits where one party (plaintiff or defendant) is different individuals and organizations with common interests in that dispute, there are usually only a few individuals and organizations successfully protect their legitimate rights and interests, while the rest of individuals and organizations have to accept that their rights and interests are infringed.

This situation occurs because individuals and organizations have trusted and expected too much that a few representatives can work with the other party without contributing to the dispute settlement process themselves. Although individuals and organizations have common interest in that dispute, the purpose of the settlement is still to protect the lawful rights and interests of each individual and organization. Therefore, if individuals and organizations want to resolve disputes, each individual and organization must spend time and effort to protect their rights and interests first, then they can protect the common interests of the whole group.

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Another reason individuals and organizations should litigate themselves to protect their rights and interests is that in case individuals and organizations appoint representatives to resolve disputes, if the other party negotiates or entices representatives to its side, individuals and organizations will lose their leader and be easily divided and disbanded. If each individual or organization litigate against the other party on its own, that party will simultaneously have to settle the dispute with all individuals and organizations instead of a few representatives as in the case above. Thus, the success rate to protect the rights and interests of individuals and organizations in the second way will also be higher.

In summary,  we would like to note that during the negotiation in case the dispute has plenty of parties, each individual, organization should contribute their own efforts, time or litigate themselves to protect their rights and interests. It is more beneficial than that individuals and organizations rely on a few representatives to claim rights and interests for the whole group.

Above are our legal sharings about negotiation in case the dispute has plenty of parties. TNTP hopes this article is useful for you.

Best regards.

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TNTP & Associates International Law Firm

Lawyer Nguyen Thanh Ha

Email: ha.nguyen@tntplaw.com

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