Alternative Dispute Resolution

Question 1

Mediation

Answer 1

• Co-operative method of dispute resolution
• High structured
• Parties sit down and discuss issues, develop options, consider alternatives and reach agreement with the help of one or two mediators. An effective, cheap and quick method of dispute resolution.
• Does not try to find fault, reaches agreement, mediator impartial

Question 2

Conciliation

Answer 2

Impartial third party (Conciliator) tries to get the parties to reach an agreement. They not force the parties to reach an agreement but may suggest solutions.
Decisions reached are not binding.

Question 3

Arbitration

Answer 3

More formal, parties refer the dispute to a third person (an arbitrator) to make a decision
The arbitrators decision is binding, with limited right to appeal (through the courts).
Mainly used in commercial disputes.
Used in the Magistrates Courts for disputes of less than $10,000

Question 4

Judicial Determination:

Answer 4

Going to court/VCAT and getting a judicial officer to make a legally binding decision

Question 5

Advantages of ADR

Answer 5

• Less formal
• Suitable venue
• Cheaper
• Confidential
• Identifies the issues
• Voluntary
• Flexible
• More able to address the needs of the parties
• Not adversarial (both parties win)

Question 6

Disadvantages:

Answer 6

• Not binding (other than arbitration)
• One party may manipulate, or one party may feel intimidated into reaching a decision
• Parties can refuse to attend
• If no decision reached the matter may have to go to court anyway.