ADR

Question 1

What is negotiation and what are its advantages and disadvantages?

Answer 1

Negotiation is an open and informal discussion between the parties to try and reach an amicable settlement.

Pros:
1. Cost and time
2. Confidential
3. Preserve relationships

Cons:
1. No binding resolution
2. Not legally enforceable

Question 2

What is mediation and what are its advantages and disadvantages?

Answer 2

Mediation is a process that involves parties appointing a neutral third party to actively assist them towards reaching a mutually beneficial arrangement.

Pros:
1. Cost and time
2. Confidentiality
3. Without prejudice
4. Preserves relationships (because of neutral third party)

Cons:
1. No precedent
2. Commitment
3. Complexity
4. Uncertainty

Question 3

What is arbitration and what are its advantages and disadvantages?

Answer 3

Arbitration is a more formal way of settling disputes, where parties appoint an impartial arbitrator or a panel of arbitrators to resolve the dispute.

Pros:
1. Confidential
2. Final solution
3. International enforceability
4. Flexibility

Cons:
1. Expensive
2. Timely
3. No precedent
4. Adversarial

Question 4

What is expert determination and what are its advantages and disadvantages?

Answer 4

Parties instruct an expert third party to decide the issue between parties.

Pros:
1. Cost and time
2. Preserve relationships
3. Flexibility
4. Confidential

Cons:
1. No precedent
2. Non-binding
3. Not always appropriate if there are significant issues of fact