1A ADR & Tribunals

Question 1

Define alternative dispute resolution

Answer 1

Provides an option to stay out of court by talking with a third party

Question 2

What are the four types of ADR?

Answer 2

Negotiation, mediation, conciliation and arbitration

Question 3

Define negotiation

Answer 3

Process of trying to come to an agreement with the other party, can be done directly or through solicitors. It is not legally binding.

Question 4

Define mediation

Answer 4

Where a neutral mediator helps the parties reach a not legally binding solution. The mediator will try to find common ground, look at both sides’ needs and keep everything confidential.

Question 5

Examples of mediation

Answer 5

Centre of Effective Dispute Resolution (main commercial mediation service for businesses) and UK Family Mediation Service Herefordshire.

Question 6

Define conciliation

Answer 6

A neutral third party helps resolve the dispute, the conciliator is more pro-active than a mediator. Not legally binding.

Question 7

Define arbitration

Answer 7

Parties submit their claims to private arbitration. The decision is legally binding and can only be appealed in exceptional circumstances.

Question 8

What is a Scott v Avery clause?

Answer 8

The parties signing agree to use arbitration in the event of a dispute. Under s9 of the Arbitration Act 1996, courts will enforce it if a party tries to go to court.

Question 9

Advantages of ADR

Answer 9

Quicker and cheaper- with most disputes, parties will not require lawyers.
More control for parties- in mediation and negotiation, parties can choose to stop at anytime.
Less ‘adversarial’ (conflict)- more relaxed than formal courtrooms so parties may be able to maintain a working relationship after the matter has been resolved.
More flexible- some mediation can be completed via phone calls which reduces stress on the parties.

Question 10

Disadvantages of ADR

Answer 10

Only arbitration is binding, other options may still proceed to court.
Weaker parties may still be ‘bullied’ especially in ADR where there is less third party input.
Mediation, conciliation and negotiation will only work where the parties are willing to compromise, it isn’t suitable for situations where violence has been used or threatened.