adr Flashcards
What is arbitration?
The parties submit their claims to an arbitrator to settle and if they can’t, the courts use an informal procedure
What is conciliation?
The use of a neutral person to resolve a dispute, the conciliator playing a more active role
What is mediation?
The use of a neutral person to help parties come to a compromise
What is negotiation?
The process of trying to come to an agreement
What is the cheapest and quickest form of ADR?
Negotiation
What is the most expensive form of ADR?
Arbitration
What is a Scott v Avery clause?
a contract between 2 parties saying they will submit any future dispute to arbitration before taking any court action
Advantages of negotiation
.cheap
.used at any time
.conducted by parties themselves
Disadvantages of negotiation
.May not be successful so other ADR is used
.Not suitable for all cases
.Failure prolongs the issue
Advantages of mediation
.Parties are in control
.they can withdraw at any time
.the decision need not be a legal one
Disadvantages of mediation
.No guarantee the matter will be resolved
.The weaker party can be bullied into a settlement
Advantages of concilliation
.Makes it easier for parties to do business in the future
.Avoids winner/loser of the court room proceedings
Disadvantages of concilliation
.Amount paid in settlement is often lower than agreed
Advantages of arbitration
.Parties can choose a lawyer or arbitrator .flexible procedure .private .cheaper than court .decision is final and enforcable
Disadvantages of arbitration
.An unexpected legal point may crop up
.Large fees for legal help and hearings
.Rights of appeal are limited
.delays are as great as in court