Alternative Dispute Resolution (ADR)

What is ADR

• a way of describing any method of resolving a dispute without using the courts (or a tribunal)

  • popularity is increasing because it avoids some of the disadvantages of court proceedings

Methods of ADR: Negotiation

the most informal method of ADR where the parties involved attempt to reach an agreement through direct discussion, some lawyers

Negotiations advantages and disadvantages

advantages:

• encouraged cooperation

• quick and cost effective

• confidential

• flexible

• can take place at any stage

Disadvantages:

• not legally binding (unless made into a formal contract or court order)

• no guarantee of resolution

• power imbalance risk

• can be time consuming

Methods of ADR: Mediation

• involves a neutral third party who helps the disputing parties communicate work towards a mutually acceptable

  • the mediator does not impose a decision but instead but instead facilitates discussion and conveys offers between the parties

Mediation advantages and disadvantages

advantages:

• encourages cooperation

• confidential

• less adversarial

• flexible

disadvantages:

• not legally binding

• no guaranteed resolution

• power imbalance concerns

• requires willingness

Methods of ADR: Conciliation

• involves a more active role from 3rd party, the conciliator helps the parties better understand each other’s positions and suggests ways to reach a compromise

conciliation advantages and disadvantages

advantages:

• more structured

• confidential

• encourages settlement

• preserves relationships

disadvantages:

• not legally binding

• no guaranteed outcome

• power imbalance concerns

• limited use

Methods of ADR: Arbitration

• it is a legally binding process, the parties agree to submit their dispute to a 3rd party arbitrator instead of a judge (Arbitration Act 1996 section 1)

Arbitration advantages and disadvantages

advantages:

• legally binding

• expert decision making

• quicker and cheaper than court

• flexible process

• confidential