Alternative dispute resolution (ADR) and the advantages and disadvantages of ADR

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Luke Wellings

Alternative dispute resolution (ADR) and the advantages and disadvantages of ADR

Alternative dispute resolution (ADR) is an alternative way for people to settle disputes instead of going through the courts. There are many different types of ADR, which can be used to settle disputes. The most common methods of ADR are Tribunals, Negotiation, conciliation, mediation and arbitration.

Negotiation is the method that most parties in dispute take before they take any further action. This normally conducted either directly between the parties who have a dispute or through their lawyers. Conciliation, this is where a conciliator takes an active role and suggests methods of compromise for the parties.  

Mediation, this ADR is conducted with an independent 3rd party mediator who doesn’t impose a legally binding decision, but helps the parties come to a compromise solution. Mediation has become a popular way of settling disputes and is also now available on the onternet. The cost of a mediator is about £1500, which is a lot more cost effective than litigation, which can cost thousands in legal fees. The Family law act 1996 made mediation compulsory within the divorce process, however pilot schemes conducted proved it to be unpopular so the Act was never brought into force.

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Arbitration is a form of ADR in which two parties in a dispute agree to an independent 3rd party making a legally binding decision to resolve the dispute. Arbitration is especially important in commercial business disputes, most arbitrators are legally qualified, so they have a good knowledge of the law. The regulations of arbitration are set in the Arbitration Act 1996, under this act courts and judges will usually refuse to hear cases where there is an arbitration agreement. There are three main ways in which arbitration can come about. Firstly by contract parties signing a contract may include a ...

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