Means of resolving a dispute without having to go to court
The use of ADR is encouraged by the civil procedure rules which was a result of the Lord Woolf report
Methods of ADR
Negotiation
Mediation
Arbitration
Mitigation
Negotiation
Solving the dispute with the parties directly
Negotiation
Mostly used in family cases and neighbour disputes like noisy neighbours or parking disputes
Could involve solicitors that result in a settlement before the court date
The biggest method of ADR as it's completely private, easy and has minimal costs
Negotiation case
The case of Charlotte Church where she managed to negotiate £600,000 against news of the world for hacking into her phone
Mediation
Mediation involves having a third part known as the mediator who is there to take the heat out of the dispute.
This is popular in family cases like divorce or child custody.
The mediator cannot suggest ways to compromise as the parties must be encouraged to make their own decisions.
Mediation case
Mediation is starting to become a compulsory form of ADR which is seen in the case of Dunnett v Railtrack where Railtrack refused to mediate. In court Railtrack won however, the court of appeal refused to make an award of costs in its favour because Railtrack had refused ADR in the first place.
Mediation - MIAMS
In 2012 there was the introduction of MIAMS which are mediation information assessment meetings and this is a compulsory meeting for all divorcing couples. However, this doesn't work for all cases, for instance a domestic abuse case.
Conciliation
Involves a third party, the conciliatory, taking a more active role in suggesting ways to come to a settlement
Conciliation used in
Industrial disputes
Commercial disputes
ACAS
The biggest conciliatory body where it provides trained conciliators from within your industrial disputes
Conciliation
Prevention rather than cure approach
Used in access to services for the disabled
Conciliation
Can be used to prevent industrial strikes
Arbitration
The oldest and most formal method of ADR (Alternative Dispute Resolution)
Arbitration
Governed by the Arbitration Act 1996
Award is legally binding on the parties
Most common in commercial contracts and sporting disputes
Flexible procedure
Parties can choose a specialist in the field or legal professionals as an arbitrator
Must be carried out in a judicial manner in line with natural justice
Example of arbitration
Scott v Avery clause - an agreement to arbitrate before court
by signing this contract You have agreed to go to arbitration instead of court
Negotiation- disadvantages
Parties can go back on agreement as not legally binding
Parties may not agree during negotiation so have to go to court anyway
Negotiation- advantages
Most informal
Most quick
Most cost-effective – can be free
Mediation- advantages
Avoids confrontations
Maintains relationships (can be friends/partner even after the ADR)
Parties choose mediator themselves
Mediator is independent
MIAM scheme does not apply to domestic violence case so protects victims
Disadvantages of Mediation
Successful mediation can take longer than court (mediation is usually 3-5 days, and court can be only 1 day)
If legal point arises then no one to help resolve it and parties will have to go to court
Mediator cannot force parties to agree
Advantages of conciliation
Conciliator plays an active role to resolve dispute
Services like ACAS provide specialist conciliators with industry knowledge
Discussions are private
Disadvantages of conciliation
Can be costly if private conciliator is hired
Parties may not agree during conciliation so have to go to court anyway
Advantages of Arbitration
Hearing takes place at time and venue of the two parties' choice
More private than court
A legally binding decision under the Arbitration Act 1996
Disadvantages of Arbitration
Appeal route is limited – can only appeal on Point of Law and not actual decision of tribunal judge
Professional arbitrators are expensive
Delays for commercial arbitration can be longer than actual court itself