Alternative Dispute Resolution (ADR) is the name given to the process where parties in a dispute come to a compromise (or settle their dispute) without going to court.

Authors Avatar

Assignment 2.9

a)Alternative Dispute Resolution (ADR) is the name given to the process where parties in a dispute come to a compromise (or settle their dispute) without going to court.  The main reason people use ADR is to save the expense of using the courts and solicitors. There are four types of ADR mediation, negotiation, conciliation and  arbitration.

Negotiation is the simplest form of ADR.  Where two people have a dispute they can negotiate a solution themselves.  The advantages to the parties involved are that it is completely private and it's fast and cheap.  This is where parties to a dispute cannot settle it themselves they may instruct solicitors who will negotiate on their behalf.  Even when negotiation fails at these early stages of a dispute and court proceedings start, solicitors will usually continue to negotiate on their client's behalf.  This results in many cases being settled out of court.

Mediation is where a neutral person (the mediator) helps the parties to reach a compromise.  The job of the mediator is to consult with each party and see how much common ground there is between them.  S/he should act as a facilitator, taking offers between the parties.  The mediator doesn't offer an opinion.  Mediation is most suitable where there is some chance that the parties will co-operate. such a in family disputes.  Mediation is not legally binding on the parties.

Conciliation is similar to mediation where a neutral third party helps the parties to resolve their dispute, however, the conciliator plays a more active role in the process.  S/he will be expected to suggest ways in which a compromise could be reached.  Conciliation is not legally binding on the parties.

Arbitration is the most formal of the methods used to settle disputes without using the courts.  Arbitration is where the parties with a disagreement pass their dispute to a third party, who will make a judgment on their behalf.  This judgment is legally binding on the parties.  The relevant law on arbitration can be found in the Arbitration Act 1996. 

Join now!

The agreement to go to arbitration can be made by the parties at any time.  It can be written into a business contract by what is called a Scott v Avery clause or the parties may just agree on arbitration when a dispute arises. The parties can agree the number of arbitrators who will hear their dispute.  It could be three, two or just one person.  The parties will normally appoint someone who is an expert in their particular area of business.  There is also the Institute of Arbitrators who will provide trained arbitrators to parties who wish to settle a dispute.

...

This is a preview of the whole essay

Here's what a teacher thought of this essay

Summary: an accurate outline of forms of ADR and discussion of their advantages and disadvantages; followed by an effective consideration of the Woolf reforms to civil courts. Rating: *****