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Consider carefully the facts of the case study and advise Eagle Aviation Ltd. and Aircraft Ltd. of the alternatives to litigation in the ordinary courts and the advantages and disadvantages of each alternative form of ADR.

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Introduction

Emma Carnell Foundation Degree Business QUESTION Consider carefully the facts of the case study and advise Eagle Aviation Ltd. and Aircraft Ltd. of the alternatives to litigation in the ordinary courts and the advantages and disadvantages of each alternative form of ADR. This submission will identify and define each form of Alternative Dispute Resolution (ADR) including each of the forms advantages and disadvantages. It will also compare and contrast each form of ADR and consider which form or forms would be beneficial to both Eagle Aviation Ltd and Aircraft Ltd Alternative Dispute Resolution or ADR can be defined as "any method of resolving a legal problem without resorting to the legal process" (Darbyshire, 2001). ADR is now becoming more and more favorable particularly within the court system as an alternative to traditional forms of litigation (Practice Statement [1994] 1 ALL ER 34, Cresswell, J) (Practice Note [1996] 3 ALL ER 383 this is as litigation is a process that can be costly, time consuming and complicated, therefore ADR is an alternative which can be useful to all parties involved. The leading forms of ADR are; Arbitration, mediation, conciliation and negotiation. ADR is not legally binding with the exception of Arbitration, however in Mediation when a solution has been reached and agreed by each party once it has been written and signed by the parties involved it does then become a legally binding document. ...read more.

Middle

The majority of contracts between businesses now include what is known as an Arbitration Clause, this is when parties agree that any future disputes that may occur will be submitted to Arbitration instead of pursuing litigation. There are of course advantages and disadvantages to Arbitration as there are with all other forms of ADR, some of the advantages are that; it is a private process and within business means that any particularly sensitive information about the parties involved and their company remains completely confidential, it is also an informal process unlike litigation, it reduces the risk of parties pursuing litigation, it can help arrive at a decision much quicker than litigation and a significant advantage is that it is considerable less expensive than litigation. The disadvantages are; there is no automatic right to appeal once an Arbitration Award has been prepared, Arbitrators are not obliged to follow the law and it can be extremely difficult to resolve the entire dispute. As in some cases a provision may have already been made within a contract for a particular Arbitrator it may cause problems if the other party feels that the appointed Arbitrator may show bias towards them. Another form of ADR is Mediation; Mediation started within Family Law and has been strengthened by the 1996 Family Law Act, it is used to deal with custody and divorce issues nevertheless it is now becoming widely used within the business community as a way of solving company disputes and it is now being offered as an alternative to litigation by the courts. ...read more.

Conclusion

Negotiations will usually be held in a neutral environment and will be more informal than standard litigation this may help the parties to relax and come to a suitable and rational decision without the situation getting out of hand. Each party will in turn be able to state what they feel is the nature of the dispute before negotiating a suitable outcome. Negotiation is slightly different to Conciliation and Mediation as the person negotiating acts on 'your' behalf and represents and looks after 'your' interests, a successful negotiator will be able to reach a conclusion where they are able to achieve most of their parties wishes but without causing the other party to feel they have lost and therefore detach themselves from the rest of the negotiation process and then choose to pursue a litigation option. Conciliation can be seen as a form of Mediation in fact some people say that the only difference between them is that Conciliators have more power than Mediators as they can "suggest grounds for compromise and the possible basis for a conclusive agreement" (Slapper and Kelly, 2001). Conciliation like Arbitration is part of ACAS and like Mediation tries to allow parties to decide an outcome between them that suits them both, however it does not always guarantee that a dispute will be settled and will not proceed to litigation anyway. ?? ?? ?? ?? 1 ...read more.

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