Lecture 8 - Commercial Dispute Resolution Flashcards
Majority of commercial and civil disputes are settled..
Without going to court
Costs in UK
Usually, losing party pays winning party’s legal costs, but always unrecoverable amount around 25%
No guarantee
Winner will get paid
Enforcement of paying (5)
- Instruct Bailiff to seize goods
- Obtain charging order over property (if no mortgage)
- Get employer to deduct from their wages
- If other people owe them money, get them to pay you instead
- Make them bankrupt (won’t get money back but threat)
Tribunal
Set up by government to deal with disputes in specific areas eg Employment Tribunal
Tribunals designed..
For people to represent themselves (cheaper)
Arbitration
Dispute is referred for a decision to independent arbitrator (expert in field).
Dispute only referred to Arbitration if:
- Parties agreed beforehand
- After dispute, BOTH parties agree
New York Convention
160ish countries signed up to agree to enforce arbitration awards internationally
Arbitration held
In private, therefore confidential
Mediation
Independent accredited mediator appointed to broker settlement. Much cheaper and easier than court
Mediation useful if
Want to preserve commercial relationship.
Courts opinion of mediation
Actively encouraged, severe cost penalties imposed for those who unreasonably refuse to attempt mediation
Med-Arb
Parties agree before or after dispute arisen that they will try to resolve differences through mediation, but if this is unsuccessful, will go through arbitration rather than court
Parties..
Free to decide way to resolve dispute
