alternative dispute resolution

Cards (12)

  • adr is when a different method is used to avoid having to go to court. It includes:
    • negotiation
    • mediation
    • conciliation
    • arbitration
  • arbitration is when both parties agree to let a third party make a binding decision
  • arbitration is the most formal type of ADR
    The parties agree to have their disputes decided by an independent arbitrator
    The small claims procedure is a type of arbitration
    Many businesses/trade unions use arbitration to settle disputes that may arise
  • Arbitration is governed by the Arbitration Act 1996.
  • the agreement to arbitration can be made by parties at any time
    it can be before a dispute arises or even afterwards
  • The Scott vs Avery clause
    this is where businesses might include a scott v avery clause in case of a dispute that might occur
    it sets out that if a dispute was to occur then they would use arbitration to settle the dispute
  • the hearing is set for a time in which it is convenient for both parties
    Paper arbitration is conducted where the parties submit their dispute in writing with any relevant documents to the arbitrator who then decides who gets the award
  • the parties are free to choose who will be the arbitrator in their case
    The arbitrator may be a lawyer or someone who is an expert in that particular area e.g employment
    The Institute of Arbitrators provide skilled arbitrators if the parties cannot agree who they want to employ
  • the decision is made by the arbitrator and it is final
    The decision is effective immediately although there might be a delay if the arbitrator has referred a point of law to the High Court
  • negotiation is the process of trying to come to an agreement
  • anyone can use negotiation to solve a dispute
    can be informal or can be formal
    once lawyers are involved there is a cost - the longer negotiations last the higher the cost will be
    sometimes cases go on for years only to end in an agreed settlement
    it is private, cheap and quicker than going through courts
  • mediation is using a neutral person in a dispute to help the parties come to a compromise solution