Lecture 8 - Commercial Dispute Resolution

Question 1

Costs of a commercial dispute

Answer 1

Usual rule is that the losing party has to pay the winning party’s legal costs, though there is an unrecoverable element of around 25%. (So even winning parties have large costs)

Question 2

Enforcement of payment

Answer 2

• Instruct the sheriff to seize defendant’s goods
• Obtain charging order on his property
• Get employer to deduct it from wages
• Make him bankrupt (usually just a threat)

Question 3

What can be done apart from formal court/tribunal action?

Answer 3

Arbitration
Mediation
Med-Arb
Any other method parties desire

Question 4

What is arbitration?

Answer 4

Dispute is referred to an independent arbitrator - this is quicker, cheaper and easier than going to Court. Both parties must agree to abitration.

It is also confidential, and is very common in international disputes.

Question 5

What is mediation?

Answer 5

Independent mediator attempts to settle by negotiation and compromise. This is quick, easy and confidential - and parties can still go to court if it doesn’t work.

Question 6

Are tribunals a method of ADR?

Answer 6

NO!!

This is a common mistake. They are merely a slightly different form of court.