Conflict Avoidance, Management & Dispute Resolution Procedures

Question 1

How can you avoid conflict?

Answer 1

• Clear, concise lease documentation or contracts.
• Managing expectations.
• Careful and transparent negotiations.
• Good records with sufficient detail.

Question 2

What is PACT?

Answer 2

Professional Arbitration on Court Terms.

It is a joint initiative between RICS and Law Society to determine dispute. Fast, cost effective, and confidential.

Can act as an arbitrator or independent expert.

Specific to business tenancy renewals under L&T 1954

Question 3

What is ADR?

Answer 3

Alternative Dispute Resolution are methods of resolving disputes outside of court/litigation.

Negotiation is the most basic form.

Benefits include speed, informal, greater negotiation, cost less, quality decision by professional, and confidential.

Question 4

What is Arbitration?

Answer 4

Governed by the Arbitration Act 1996.

Key provisions:
- Binds parties.
- Specialist knowledge.
- Written representations.
- Cannot be sued.
- Common for commercial property.

Question 5

What is an Independent Expert?

Answer 5

Appointed by mutual agreement.

Key provisions:
- Binds parties.
- Specialist knowledge.
- Can make own investigations and use written representations.
- Could in theory be sued.
- Common for rent review or service charge disputes.

Question 6

What is Mediation?

Answer 6

Appointment of a neutral mediator to facilitate discussion between parties. It is confidential and informal. Conducted ‘without prejudice’ and not enforceable. Not legally binding.

Question 7

What is the RICS Dispute Resolution Service?

Answer 7

• Largest provider of ADR services.
• Provides training for those who want to be a dispute resolver.

Question 8

What is an Expert Witness?

Answer 8

Appointed to present evidence to a dispute resolver in court. Must make a declaration of truth to a tribunal.

Must act:
- Independent
- Unbiased
- Within their expertise
- Experienced and with knowledge
- Truthfully

Question 9

How do Terms of Engagement help avoid conflict?

Answer 9

• Scope of works.
• Understand client objectives.
• Agreed fees.
• Written instruction.

Question 10

What is a Calderbank Offer?

Answer 10

Used for rent reviews to settle before court. Without Prejudice.