alternative dispute resolution (ADR)

• parties


  don't have to take their cases to civil courts
• benefits


  resolved in private

  parties involved in the decision making

  much quicker

  less expensive
• 4 different ADR methods


  arbitration

  conciliation

  mediation

  negotiation
• arbitration 


  most formal

  parties agree to have their dispute decided by an independent arbitrator

  businesses and trade unions use this
• arbitration - Scott v Avery clause 


  a part in the contract

  business may opt to use it in their contracts

  parties signing the contract are agreeing that if a dispute should arise in the future they will use arbitration
• arbitration - the hearing 


  set for a time and date that's mutually convenient for both parties

  formal or informal as parties decide

  parties may opt for hearing where documents are submitted followed by a short hearing
• paper arbitration 


  conducted where parties submit their dispute in writing to the arbitrator who will decide who to grant the award

  (a decision)
• most formal arbitration 


  involves lawyers and witnesses attending hearing in a similar way to a court case
• the arbitrator = judge 


  parties free to choose who the arbitrator will be

  sometimes a lawyer or an expert in particular cases

  choose a single arbitrator or panel
• institute of arbitrators 


  provide skilled arbitrators whom the parties may choose to employ if they can't agree
• arbitration - the award 


  decision is effective immediately

  binding legally

  may be a delay if arbitrator misinterpreted/ misapplied a law

  queen's bench divisional court can challenge the award on a point of law
• conciliation 


  less formal

  conciliator play a more active role in trying to solve dispute
• conciliator 


  neutral third party

  actively try to get parties in the dispute to come to an agreement

  often meets with parties separately + suggest solutions

  try get parties to compromise or reach a settlement

  no authority to see evidence or call witnesses
• decision not binding - conciliation

  unless agreed by parties that it will be legally enforceable
• court - conciliation

  parties still go to court if an agreement/compromise is not agreed by the parties
• parties - concilliation

  full control if the process

  allowed to withdraw at any point

  decide time and place that is convenient
• non-binding opinion - conciliation

  conciliate offers to parties

  how they should settle the dispute
• benefits of conciliation 


  useful in disputes between companies

  use conciliation to assess strength of case before deciding to take it to court
• mediation 


  independent third party meets with the parties in the dispute

  try get them to reach a settlement
• mediator 


  won't make suggestions

  they facilitate (assist) parties to make the decision for themselves

  doesn't offer an opinion unless asked
• mediator role


  consult each party

  explore needs of each party

  keep confidentiality

  make sure an agreement is reached between parties
• mediation - parties

  control over the resolution process

  pick their own time and place

  may withdraw at any time

  must agree to the compromise for mediation work
• choosing method of mediation


  parties may choose
• mediation - family disputes 


  mediators often training in counselling skills

  family law act 1996 encourages divorcing couples to use mediation
• negotiation 


  least formal

  takes place between the parties themselves

  private, quick and cheapest

  face to face, emails, telephone
• negotiation deals with


  neighbouring pr family disputes
• parties - negotiation


  initially try to negotiate a settlement before further action is taken

  parties talking to each other
• solicitors - negotiations 


  negotiations between solicitors of the the parties in the run of to a civil trial

  continue once a claim has been made and the parties are awaiting for their trial date