ADR AO3 Flashcards
M/C - Parties in control
DP - Parties can withdraw at any moment, compromise can’t be reached without agreement of both sides
WDP - Different to arbitration which has a legally binding decision, may reach an unfavourbale outcome whcih they have no control over
M/C - Speed and costs
DP - Much cheaper then going court and much quicker, issue resolved at earlier date
WDP - If issue does go court, M/C has clarified issue, takes up less courts time, cheaper
M/C - Private
DP - More private, media is less likely, only parties are aware of dispute
WDP - Business reputations are less lilely to be damaged, makes commercial sense to use M/C
M/C - Successful
DP - Avoids adversarial conflict of the court room and winner/loser concept of court proceedings
WDP - High no. of cases resolved using M/C, E.g., Centre for Dispute Resolution claims that over 80% of cases asked to act are settled
M/C - Dispute not resolved
DP - No guarantee the matter will be resolved, necessary to go court after failed attempt at M/C
WDP - Process is dependant on co-operation, failure to do so will delay process and increase costs
M/C - Time
DP - Agreement can’t be enforced in M/C, dispute could go on for a long time
WDP - Lengthy dispute is disadvantageous, especially when business is relaint on money they’re trying to recoup
M/C - Potential unequal power
DP - Successful M/C requires a skilled M/C, if have poor skill setm process becomes bullying excercise where weaker aprty is forced into a settlement
WDP - If lean on two halves of see saw, weaker one breake, more likely to happen in conciliation where take active role
M/C - Not legally binding
DP - Depends on parties committment to reach resolution, no process for appeal
WDP - Differs from arbitration which is binding and has coherent appeals systems in event of further dispute
Arbitration - Parties in control
DP - Choose their own arbitrator, decide if best dealt by a technical expert, lawyer or professional arbitrator
WDP - Likely happy with decision, less liley to take dispute to court
Arbitration - Speed & Costs
DP - Much cheaper than court, dont have to pay high court fee, an advantage
WDP - Much quicker to get trial date, business cna function
Arbitration - Private
DP - Private proces, no publicity, attractive as court hearing may have negative impact
WDP - Flexible as parties choose method of arbitration, informal and relaxed hearing, good for business relationships
Arbitration - Legally binding
DP - Enforceable in courts, as arbitrator decision is final, can’t be questioned
WDP - Both parties agreed to appoint arbitrator, have to accept decision
Arbitration - Legal funding
DP - Not available, present huge problem, parties not on equal footing with regards to present case
WDP - If case went to court, low income would benefit from lawyer presenting case
Arbitration - Expense and delays
DP - Even though cheaper than court, can still be expensive process, if professional arbitrator used, may have high fees
WDP - Expensive is parties opt for formal hearing with witnesses giving evidence and lawyers representing both sides
Arbitration - Lack of legal knowledge
DP - Trained to deal in disputes, not legally qualified, unexpected legal point may arise, not suitable for non-lawyer to decide
WDP - Parties won’t receive good level of service compared to one given by judge