ADR Flashcards

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1
Q

What is ADR (Alternative Dispute Resolution)?

A

Alternate, out of court methods to settling disputes

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2
Q

What are the four forms of ADR?

A
  • Negotiation
  • Mediation
  • Conciliation
  • Arbitration
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3
Q

What is Negotiation?

A

The process of trying to come to an agreement

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4
Q

What are the advantages of negotiation? (Not needed in test)

A
  • Can be conducted by the parties themselves - no need for lawyers (cheaper)
  • Can be used at any point of the dispute (beginning to the start of the court hearing)
  • CHEAPEST METHOD OF RESOLVING A DISPUTE
  • Can include agreement about future business deals
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5
Q

What are the disadvantages of Negotiation? (Not needed in test)

A
  • Can be unsuccessful, meaning other ADR or a court hearing has to be used (waste of time and money)
  • May not be suitable if antagonist feelings are present (parties cannot co-operate in finding a resolution)
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6
Q

What is Mediation?

A

Using a neutral person/panel to help the parties come to a compromised solution

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7
Q

Characteristics of Mediation:

A
  • The neutral third party will work with both sides, offering advice on the merits of each side’s evidence
  • May cost money if using a commercial mediation fund, but costs are still a lot lower than court cases
  • Some mediation firms are free, where trained volunteers will help settle less serious disputes
  • Is only useful if there is some hope of compromise
  • A MIAM (Mediation Information and Assessment Meeting) is normally used in family cases before any court proceedings
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8
Q

What is Conciliation?

A

The conciliator (3rd party) will help both parties understand their respective positions and suggest grounds for compromise and the possible basis for a settlement

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9
Q

What are the advantages of Mediation and Conciliation? (Not needed in test)

A
  • The parties are in control and can withdraw at any point
  • A compromise cannot be reached without agreement from both sides
  • The decision is not solely based on law - more likely to be based on commercial common sense and compromise
  • Can include agreements for future business deals and helps continue business between parties
  • Avoids the adversarial conflict of the court room
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10
Q

What are the disadvantages of Mediation and Conciliation? (Characteristics needed in test)

A
  • Main disadvantage is that there is no guarantee the matter will be resolved and court will be necessary after the failed attempt (additional costs and delay)
  • Success of compromise relies solely on skill of 3rd party
  • Amounts paid out are often lower than other mediated settlements and the courts
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11
Q

What is Arbitration?

A

When all parties agree to submit their claims to private arbitration, where an impartial tribunal obtains a resolution to a dispute

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12
Q

What is the process of Arbitration.

A
  • Private arbitration rules set out in the Arbitration Act 1996
  • Both parties voluntarily submit to go through the process
  • Number of arbitrators appointed is agreed upon
  • The date, time and place of the hearing is worked out between the parties and the arbitrator
  • The arbitrator’s decision is final and binding
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13
Q

What are the advantages of Arbitration? *

A
  • Hearing time and place agreed upon by both parties (flexible)
  • Matter is dealt with in private
  • Dispute will be resolved quicker
  • Usually much cheaper
  • Award can be enforced by courts
  • Parties agree on arbitrator, and decide whether the matter is best dealt with by a technical expert, lawyer or professional arbitrator
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14
Q

What are the disadvantages of Arbitration? *

A
  • Professional arbitrators may have expensive fees
  • Rights of appeal are limited
  • Delays for commercial and international arbitration are almost as long as court hearing delays
  • An unexpected legal point may arise which cannot be dealt with by a non-lawyer arbitrator
  • May be expensive if parties opt for a formal hearing, with lawyers and witnesses
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