ADR Flashcards
What are the three main types of ADR?
Mediation, conciliation, arbitration
Explain mediation…
Parties agree to submit their case to a neutral mediator who is often a legal professional
Their role is to act as a go between, parties often in different rooms and mediator explains points of view and they don’t give their own
Idea is party reach a decision between themselves
Who is mediation most useful for?
Businesses and family law, particularly because cuts to legal funding in this area
Explain conciliation…
Set up to deal with employment disputes
Run through free system called ACAS
Acts as alternative to employment tribunal
Conciliator acts similar to mediator but will provide own view and the decision reached is legally binding, but is a joint decision not solely the conciliators like in arbitration
Explain arbitration…
Parties agree to submit their case to arbitrator/s
Arbitration act 1996 governs this. Sets out that procedure is solely at parties discretion eg times, format of hearing, place, number of arbitrators
Arbitrator provides an award based on their decision (legally binding)
No redress to courts
Usually happens as companies have a Scott v Avery clause referring them to arbitration of dispute arises
Advantages of mediation and conciliation…
Encourages future working relationships
Decision on common sense basis - no precedent
Decisions can include details of future business
Avoids adversarial nature of court room
Cheaper, each party pays own costs. In court loser pays both
Hazel Genn - voluntary mediation can promote early settlement so grievance is reduced
Quicker
Disadvantages of mediation/conciliation…
No guarantee the dispute will be settled. May have to go to court so makes process longer and additional costs
Hazel Genn found amounts paid were lower in courts and felt mediations were controlled by mediators
Advantages of arbitration..,
Lower costs
Quicker
Parties deciding majority of details promotes working together
If expert in that field is used quicker than court because things don’t have to be explained to judge
Flexible (decide procedure)
Award is legally binding
Disadvantages of arbitration…
No redress to courts
No legal aid, parties can be in unequal footing
Unexpected legal points not suitable for non lawyer
Professional arbitrators fees are high
Can be expensive if opt for formal hearing (witnesses and lawyers)
Not wheats quick, Alison ford 2 years of arbitration for sex discrimination again police authorities
Sometimes chair person isn’t always impartial
