ADR

• What is negotiation?

  When the parties resolve the dispute themselves
• ADVANTAGES OF NEGOTIATION:

  • Cheapest form of ADR
  • Private and confidential
  • Big companies may offer a settlement rather than going through a case, creating precedent for future claims
  • Very quick- unless lawyers get involved
• DISADVANTAGES OF NEGOTIATION:

  • Only works if parties are willing to co-operate
  • When lawyers are involved, the process becomes lengthy and costly
  • It does not create any precedent for the future
• What is mediation?

  A neutral mediator will help the parties to reach a compromise solution
• ADVANTAGES OF MEDIATION:

  • The parties have the most control and can withdraw at any time
  • The decision is often based on common sense rather than actual law
  • Good for businesses since it encourages them to maintain a relationship
  • Not as adversarial as court - everyone wins
• DISADVANTAGES OF MEDIATION:

  • No guarantee that the dispute will be solved- could lead to court proceedings, draws out the dispute
  • Successful and effective mediation requires an experienced and competent expert
  • Amounts awarded in mediation are often lower than what would be awarded in court
• What is conciliation?

  A neutral third party will find grounds for compromise between parties
• ADVANTAGES OF CONCILIATION:

  • Parties are in control
  • Mostly common sense rather than law
  • Attempts to benefit both parties
  • Businesses who use this can continue to collaborate
• DISADVANTAGES OF CONCILIATION:

  • No guarantee for resolution
  • Needing a skilled conciliator - the weaker party may be forced into a settlement
  • Amounts awarded are lower than awarded by court
• What is arbitration?

  A method of resolving disputes outside of court, where a neutral third party makes a binding decision
• Arbitration Act 1996

  • Parties can obtain the fair resolution of disputes by an impartial tribunal without unnecessary delay or expense
  • Parties should be free to agree how their disputes are resolved, as long as it doesn’t harm public interest
• What is a Scott v Avery clause?

  A contractual agreement where two parties agree to arbitration if they ever encounter conflict with each other
• ADVANTAGES OF ARBITRATION

  • Parties can choose their own arbitrator
  • Experts in specific fields can be consulted for accurate outcomes
  • Hearing time and place can be suited for both parties
  • The procedure is flexible
  • No publicity
  • Faster than court
  • Cheaper than court
  • Award and decision is final and enforced by the courts
• DISADVANTAGES OF ARBITRATION:

  • Unexpected legal points may arise which can‘t be solved suitably by an arbitrator
  • Professional arbitrators can be expensive
  • Formal hearings may be opted for - expensive
  • Rights of appeal are limited