Alternative Dispute Resolution Flashcards

1
Q

What is alternative dispute resolution?

A

These are dispute resolution processes that fall outside the scope of court litigation.

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2
Q

What are the advantages of ADR?

A

Speed – no need to follow Civil Procedure Rules

Informality – outside court

Greater opportunity for negotiation

Cost – less money than professional fees for litigation

Confidentiality

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3
Q

What are the main types of alternative dispute resolution?

A

If negotiation has failed then:

Mediation and conciliation

Independent expert determination

Adjudication

Arbitration

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4
Q

What happens if ARD fails to resolve the issue?

A

It goes to litigation, which is the process of engaging in or contesting legal action in court as a means of resolving a dispute.

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5
Q

What are common causes of disputes?

A

Errors or omission in the management of the contract

Failure by employer or contractor to understand or comply with the contractual terms

Submission of poorly drafted/unfounded claims

Poorly communicated design information

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6
Q

How can the risk of conflict be avoided?

A

Clear and robust client briefing

Identify areas of risk at the outset and set out a strategy of dealing with them

Monitor risks using a risk register

Managing expectations throughout

Early warning systems set out within the contract

Partnering techniques to foster team working and problem solving

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7
Q

What is independent expert determination?

A

An independent expert is appointed jointly by the two parties to give an expert opinion on the matter to be decided. They are appointed to investigate the dispute and receive evidence from both parties and can also use their own opinion or evidence to decide upon the award.

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8
Q

What are the pros and cons of independent expert determination?

A

Pros

  • quick and cost effective
  • confidential
  • simple
  • the dispute is decided by a subject matter expert
  • can be binding if parties choose

Cons
- decision of expert enforced regardless

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9
Q

What is mediation?

A

A confidential process whereby parties to a dispute invite a neutral individual to facilitate a discussion with a view to achieving a resolution to their dispute.

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10
Q

What is conciliation?

A

The conciliator can make proposals for settlement rather than simply facilitating a discussion. A mediator is more impartial and does not take responsibility for generating solutions.

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11
Q

What is adjudication?

A

A contractual or statutory procedure for swift interim dispute resolution. It is provided by a third party adjudicator selected by the parties in dispute.

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12
Q

What are the pros and cons of adjudication?

A

Pros

  • cost effective
  • strict timescales (28 days following referral)
  • parties jointly agree on the adjudicator
  • the adjudicator is commonly a subject matter expert

cons
- not suitable for complex or high value claims

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13
Q

What is arbitration?

A

A legal proceeding under the Arbitration Act 1996 under which the arbitrator is appointed in a quasi-judicial role to reach a decision on the basis of evidence put before them, sometimes at a formal hearing.

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14
Q

What is required for arbitrations to apply?

A

For arbitration to apply, the contract between the parties must contain a written agreement to arbitrate. Many of the standard form contracts have arbitration provisions.

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15
Q

What are the rules for arbitration?

A

The Construction Industry Model Arbitration Rules (CIMAR) were drafted to comply with the Arbitration Act 1996. Those Rules were adopted by JCT as the rules for an arbitration arising under a JCT contract.

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16
Q

What are the pros and cons of arbitrations?

A

Pros

  • parties are bound by the decision
  • arbitrators frequently have specialise knowledge of the subject matter.
  • fast
  • cost effective

Cons
- The decision can be over-ruled by the Court of Appeal.

17
Q

What is the difference between adjudication and arbitration?

A

Adjudication is carried out under a strict timescale unlike arbitration for which there is not set timeframe. Adjudication applies to all construction contracts and carried out under section 108 of the HGRCA 1996, Arbitration applies to contracts drafted to comply with the Construction Industry Model Arbitration Rules.

18
Q

What is litigation?

A

Litigation is the process of engaging in or contesting legal action in court as a means of resolving a dispute. The court is able to enforce or determine one party’s rights or obligations

19
Q

Which court deals with construction disputes?

A

The Technology and Construction Court (TCC) deals specifically with disputes arising in respect of construction and engineering work

20
Q

What are the pre-requisites for brining an proceeding to the TCC?

A

The Pre-Action Protocol for Construction Disputes must usually be followed as a pre-requisite.

21
Q

What is required under the Pre Action Protocol?

A

The claimant to issue a claim letter and attach copies of key documents such as the contract

The defendant to reply within 28 days, although that period can be extended

The claimant to reply to any new issues within 14 days.

The parties should then meet in order to discuss the issues in dispute and attempt to reach settlement on at least some aspects of the dispute.

Suggests some form of ADR should run in parallel

22
Q

What are the pros and cons of litigation?

A

Pros
- legally binding

Cons

  • expensive
  • can become protracted
  • public process
23
Q

What is the hierarchy of dispute resolution?

A
Negotiation
Mediation 
Adjudication 
Arbitration 
Litigation