Alternative Dispute Resolution (ADR) Flashcards
What are the main problems with taking a case to the Civil Courts?
Expensive Delays Complexity A winner + a loser Aggressive atmosphere Stressful Not in control over the outcome Publicity
What is Negotiation?
The disputing parties try to come to a decision themselves or can instruct a lawyer to help
What are advantages of Negotiation?
Cheaper/quicker than court
Parties are in control
Can be used at any point
Can include decisions about the future
What are disadvantages of Negotiation?
No guarantee that the matter will be resolved
May still have to go to court
Only suitable if parties can co operate
Can be lengthy if it drags on
What is Mediation?
Disputing parties are helped to come to a decision themselves with the use of a neutral third party
What are advantages of Mediation?
Cheaper/quicker than court
Does not ruin ongoing relationships
Parties remain in full control
Can make decisions about the future
What are the disadvantages of Mediation?
No guarantee that problem will get solved
May still have to go to court
Not legally binding
Expensive
What is Conciliation?
The disputing parties are helped to come to a decision with the use of a neutral third party who plays an active role in suggesting a solution
Example:
ACAS - provide free and impartial advice to employees
What are advantages of early Conciliation?
Cheaper
Avoid delay
Avoid stress
What is Aarbitration?
The disputing parties agree to let a 3rd party decide. The decision made by the arbitrator is legally binding
What is the Arbitration Act 1996?
A voluntary submission by the parties
S15 - gives parties the power to choose the number of arbitrators
Can agree on when the hearing takes place and if it will be formal or written
What is the Scott v Avery Clause?
Many commercial agreements include this
If this is included in a contract then arbitration has to be used if a dispute arises
The court will refuse to deal with the case if this clause exists
What is it meant by Legally Binding?
Decision MUST be followed
Parties can’t change decision
If there was a mistake in the law then decision can be appealed
What are advantages of Arbitration?
Quicker/cheaper Parties choose their own arbitrator In private so no publicity Hearing time and place are chosen by parties Legally binding
What are disadvantages of Arbitration?
More expensive Parties are not in control Rights of appeal are limited Winner or a loser May damage ongoing relationships
