1) Legal Positions in Litigation Melor Hospital:

The Zest Health Company

(2) Parties Interests Melor Hospital:

The Zest Health Company:

(3) Brainstorming Options for Resolution (4) Selecting Options Based on Interests

Influenced by BATNA (Best Alternative to a Negotiated Agreement)

1. Legal Positions in Litigation. Melor Hospital Melor Hospital in this case is the one of the parties in the contract between Melor Hospital and The Zest Health Company. They are the defendant. Melor Hospital is the one who will contact The Zest Health Company Under the contract, whenever a patient in the hospital needs physical therapy. The Zest Health Company will then send licensed physical therapist to the Hospital. Under this contract, The Hospital agreed to pay the other parties an annual sum of RM50000 for the retaining of physical therapist.. The hospital also agreed to pay an hourly rate of RM450 for actual services rendered. Out of this RM450/hr., The Zest Health Company pays RM150/ hr. to the therapist.

The Zest Health Company The Zest Health Company in this case is the plaintiff. They will then send licensed physical therapist to the Hospital. Under this contract, The Hospital agreed to pay the other parties an annual sum of RM50000 for the retaining of physical therapist.. The hospital also agreed to pay an hourly rate of RM450 for actual services rendered. Out of this RM450/hr., The Zest Health Company pays RM150/ hr. to the therapist.

3. Brainstorming Options for Resolution Agreement between two parties required consent and communication. To reach a condition where both parties satisfied with the decision, it is not that easy. Litigation is not the wise choice in this case as litigation requires both parties try to prove the facts in their side and the decision is on the hand of the judge. Rather than giving the authority to the judge to decide, it is proper to the both parties in dispute to negotiate and reach to an agreement. 1. Negotiation among Melor Hospital and The Zest Health Company The contract is on the providing physical therapy to Melor Hospital by The Zest Health Company while the Hospital agreed to pay annual sum for retaining physical therapist. They also agreed to pay pay an hourly rate of RM450 for actual services rendered. Out of this RM450/hr, The Zest Health Company pays RM150/ hr. to the therapist. However things change when the Hospital start to received a number of complaints from patients about the quality of the physical therapy. Concerned about potential liability and the hospitals reputation, the hospital terminated the contract. The contract specifically gave the hospital the right to terminate for cause but the contract failed to define cause. However, the Zest Health Company claims and denied the complaints.

In this case, negotiation involve positional bargaining, both parties have matters willingly and unwillingly to accept. One negotiator may demand substantively on a issue just because he insisted on it. In this case, where the Hospital insisted to terminate the contract and The Zest Health Company refuse to end the contract. The Zest Health Company sued the hospital for wrongfully terminating the service contract as they are afraid of the reputation of the company. The Zest Health Company is seeking RM500,000 in damages, which consist of RM100,000 for the annual retainer over two years, RM160,000 for unpaid services, and RM280,000 for the anticipated profits over the remaining two years of the contract. In this situation, both of them have different objective Negotiation can make both parties come to a compromise situation, rather to say that it is compromise where it give negative side where a party is deemed to convince on others point, it is more to a situation where both parties satisfy with their needs and demands 2. Arbitration Arbitration is a form of alternative dispute resolution (ADR), is a technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to the "arbitrators", by whose decision they agree to be bound. The decision is regard as award. The parties will submit their difference of opinion to the arbitrators. The arbitrators then will decide according to the evidence brought in front of him. In this case, arbitration is also an alternative way for litigation. In this case, where both parties are in dispute on contract between Melor Hospital and The Zest Health Company. Both parties have evidence on their side. Due to the complained received, Melor Hospital decide to terminate the contract between them while The Zest Health Company persisted that the quality of physical therapist is in good quality and not as what the others party claim.