Advantages And Disadvantages Of ADR Flashcards
Advantages of negotiation:
Privacy:
conducted by parties themselves.
No need for lawyers: cheap (cost)
no audience/ reputation damage.
flexibility:
Can choose negotiation at any point.
helps avoid the unpleasantness of court.
done on your terms.
informality:
helps preserve and salvage relationships.
Disadvantages of negotiation:
Lack of suitability for all:
May be unsuccessful if parties are antagonistic.
Delay:
Caused my repeated unsuccessful attempts, prolongs it.
Costly:
Involving solicitors will add extra costs., if it fails the losing party has to pay the solicitors and pay for court.
Lack of faith in the system:
See it as a halfway house.
Think they would not receive as much as they would in court.
Preaction protocols:
Make you do all court prep before trial.
Advantages of mediation:
Privacy:
Between the two parties.
Less likely to get press coverage.
Quick, cost effective, accessible:
Parties have the potential to come to quick decisions, is available for all.
Mediator will help make sure that everyone is heard, which means that parties are more likely to compromise and negotiate and come to a decision faster.
High success rate:
80% cases being settled in this way means more people are encouraged to go to a mediation, rather than court.
Disadvantages of mediation:
Potential to be costly:
Mediators are not free, dispute may still end up in court.
Two sets of coats to pay: the failed mediation and the court fees. And if you lose, you have to pay the winning team aswell.
Often seen as compulsory:
DUNNET AND RAILTRACK CASE: ppl felt they have to do it before going to court. Otherwise they will miss out on money from their award.
Some cases will end up in court anyway so ADR is a waste of time.
Lack of faith:
When parties are forced into it, they only give a half-hearted attempt.
Advantages of conciliation:
Private and confidential.
Saves relationships.
More successful as third party plays a more active role.
Disadvantages of conciliation:
Relies heavily on the skill of the conciliator: if not it become a bullying excessive where parties are forced into a disadvantageous agreement.
40% unfair dismissal cases go to tribunal anyway.
Not legally binding.:
Don’t have to be strictly followed.
Advantages of arbitration:
Parties can choose their own arbitrator. S15 allows them to choose however many they like.
More comfortable, less stressed, lead to a better performance.
Flexibility:
Everything about the hearing is left to the choice of the parties: venue, date and # of witnesses. Makes them trust the decision more.
Lack of press saves business relationships.
Final award is legally binding and has to be followed.
Disadvantages of arbitration:
Lack of legal expertise
Inconsistencies
Cost
Appeals
