ADR:
Not used in cases whereby someone could be found guilty.
Explain Negotiation:
It’s not binding.
Most basic form of ADR.
This is direct resolution with the other party.
Usually no solicitors involved, but they can be.
Can be led up to the court case, sometimes cases have been resolved on the doorstop of the court hearing.
Advantages:
• Can be quick.
• Can be cheap.
• Informal.
Disadvantages:
• If lawyers get involved it can become extremely expensive.
• If no compromise – can take a while.
• Sometimes settlement may not be reached, dispute could just end up in court.
Explain Mediation:
It’s not binding.
Neutral 3rd party facilitates discussion and agreements.
Consult with each party to establish common ground, carrying offers to and fro.
Does not provide their own opinion.
Explain Arbitration:
This is binding.
Parties make an agreement to arbitrate, can even be before the dispute even arises (Scott v Avery Clause).
Arbitrators can be chosen and are specialists.
They will review the case at hand and make a decision.
Must make an agreement based on the law, will look at case law and common law, etc. must be familiar with
the law.
Advantages:
• Parties choose their own arbitrators.
• Its private.
• Its quick.
• No need for experts.
• Informal.
• Cheaper than courts.
• Enforced results.
Disadvantages:
• No legal aid.
• Can become expensive.
• No general right of appeal.
Why is it desirable to pursue ADR rather than Litigation?
Alternative dispute resolution (ADR) gives parties in dispute the opportunity to work through disputed issues
with the help of a neutral third party.
The court system faces delays, whereas ADR attempts to try and improve the situation.
• January – March 2016: Average length of time between claim and hearing in fast- or multi-track claims
was 51.9 weeks. This is the average length of time; some cases took even longer. This is the length of
time between the claim and the hearing, there is a longer wait before the judgement is formed.
The cost of ADR is cheaper than the litigation process. While the year-long process takes place, there is
considerable work undertaken by barristers and solicitors. Prior to the court process, there are expensive