Alternative Dispute Resolution (ADR) Flashcards
Why are ADRs used
Court can be costly in money and time
Traumatic for both parties
Information will be leaked in press
What are the 4 forms of ADR?
Negotiation
Mediation
Conciliation
Arbitration
What is negotiation?
Parties reach agreement together with no third party
Possible forms are face to face, telephone or emails
Process - continued taking until resolution made/failure
What is mediation?
A neutral person helps parties compromise acting as a facilitator
Does not offer opinion unless asked, passive role
Compulsory for claims below £10,000 since 2023
Both parties can withdrew at any time and have control.
Centre for Effective Dispute Resolution Deals gives 80% settle rate
What is conciliation?
Netural person takes active role in helping parties reach compromise
Used in industrial disputes
Both can withdrew at any time
What is arbitration?
-Both parties agree to let a 3rd party arbitrator or panel of arbitrators decide
-Governed by Arbitration Act 1996
-Parties agree procedure for hearing, can choose how formal
-Awards are binding and courts can enforce, awards can be challenged in the courts
-Used in building contracts, holiday contracts etc
What are pros of using courts rather than ADR?
- fair, judge is impartial
- legally qualified judge, expert in field
- legally binding so enforceable
- clear appeal system
- legal aid available
- public decisions
- can set precedent
- small claims don’t need lawyer anyway
What are cons of court rather than ADR?
- costs
- legal aid is limited
- delays
- judges aren’t technical experts
- complicated for unrep parties
- adversarial
- uncertainty for claimant if defendant pays
What are pros of ADR?
- parties in complete control
- resolved more quickly
- cheaper
- no publicity
- maintain relationships
- 3rd person can be expert
What are cons of adr?
- May just be waste of time and money
- May not cooperate
- can still be expensive in arbitration
- limited appeals
