Participate in ADR for Business Discussion

A well-drafted partnership agreement or LLC operating agreement will include a dispute-resolution provision designed to efficiently break stalemates between business owners and prevent business disputes from going to court.

Consider this scenario...

Mike and Emma are co-owners of Submarine City, LLC. The sandwich shop has earned a loyal following and respectable profits, but the owners don't always see eye-to-eye. Mike is a charismatic leader an "idea man" who likes to make things happen; by contrast, Emma, cautious to a fault, prefers to consider a wide range of options before gradually making decisions. Their conflicting personalities and management styles have caused many tense moments.

The latest incident is a case in point, but it looks to be the final straw for the duo. With profits declining (largely due to a bad building lease Mike negotiated), Emma wants Mike to simply allow her to "cash out" by writing a check for her share of the company's assets. Mike has urged her to wait, insisting that good times are just around the corner. Last week Emma told him she was tired of waiting.

Mike's response: Emma arrived Monday to find that he had closed the shop for the day and changed the door code, presumably to prevent her from accessing the company's equipment, cash register, etc. Mike left a note explaining that he had an unspecified "emergency" to handle, but Emma suspects he's out negotiating a new lease or business deal without her consent. Mike's impetuous behavior here has solidified Emma's resolve. Litigation appears to be the only way she can end this doomed business marriage. Emma is distressed that it has come to this because she's a people pleaser by nature and hates conflict. She regretfully wishes the company's operating agreement contained a straightforward procedure for resolving disputes.

Question

If Mike and Emma could go back in time and draft a dispute-resolution provision for their operating agreement, which ADR method discussed in chapter 2 would make the most sense for them? Could there be a method or combination of methods to help them amicably resolve disputes like this without going to court?