What Is ADR Flashcards
What does ADR stand for? And what does it mean?
Alternative Dispute Resolution
It means that you, as the client, want to use other methods to settle a case without going to court
Why is using ADR encouraged?
ADR is a cheaper and often easier method of dispute resolution than going to court.
It is also encouraged if the amount of compensation is relatively low so going to court would take more money than the claim is worth
Who is ADR often used by?
It is used by big business and high profile individuals as it is more private than going to court- to reduce public knowledge and keep up appearances
What are the main types of ADR?
Negotiation
Mediation
Arbitration
Conciliation
What is negotiation?
This is where the 2 parties come together and discuss what they wish to do with the claim and come up with a sum of money to compensate. There is no outside party required
List 3 pros and 3 cons of using negotiation
Pros:
- cheap as there is no need for a solicitor
- no outside interference
- the method can be used up untill your court date
Cons:
- may need a lawyer if you cannot work out an agreement mutually
- the agreement will not stand in court if either party does not follow through
- it may take a long time before an agreement is made
What is mediation?
Just like negotiation both parties must meet together, but with the same neutral 3rd party. This 3rd party member cannot use their own opinion to help sort out the dispute.
Mediators take on disputes in commercial transactions, personal injury, constructors, workers compensation, divorce, domestic relations, and anything that is not complex and without issues with the evidence given.
3 pros and 3 cons of mediation
Pros:
Good for family matters
Parties can talk seperatly or together
Offered before arbitration
Cons:
Not much verbal communication directly between the parties
May take a long time due to the back and forth communication process
What is conciliation?
This is done on a voluntary basis, it is flexible and confidential. Both parties try to reach a conclusion on their own. But if necessary the conciliator will come in and give suggestions to speed up the process.
The conciliator may ask for a non-binding settlement agreement proposal.
List pros and cons of conciliation
Pros:
Proceedings are rarely made public
Offered before arbitration
Cons:
May take a long time
Not legally binding unless agreement is signed by both parties
What is Arbitration?
This is a formal method of ADR. The arbitrator acts as a judge and hears both sides before coming to a decision. The decision is legally binding if both parties sign an agreement that says that they want it to be legally binding
Pros and cons of Arbitration
Pros:
The decision is legally binding
Cons:
There is a judge figure which may cause anxieties for some people
Pros and cons of ADR as a whole
Pros:
- is cheap (some schemes are free)
- they are quick
- they are not compulsory (depends on your case)
- more widly used making it a popular choice
- it is suitable for family matters
Cons:
- not always cheap
- can be too informal
- not always quick
- unpopular with lawyers
- not suitable for all claims (e.g. criminal law and public law)
