Arbitration is a procedure for the settlement of disputes, under which the parties agree to be bound by the decision of an arbitrator whose decision is, in general, final and legally binding on both parties. It is governed by both statute law and the common law. The principal legislation in England and Wales is the Arbitration Act 1996. As a dispute resolution procedure arbitration is the only means of dispute resolution, which is an alternative to litigation because an arbitrator's award is final, binding and enforceable summarily in the courts. In many commercial or business parties insert a clause stating that, in a case of a dispute, the matter will be referred to arbitration. This is one of the main reasons arbitration is used a lot as an alternative dispute resolution. One of the best-known examples of arbitration is found in the work of ACAS (the Arbitration and Conciliation Advisory Service) this is an organisation which acts to help settle disputes between employers and trade unions in industrial and employment cases.
Conciliation and negotiation are also an example of alternative dispute resolution. Conciliation involves efforts by a third party to improve the relationship between two or more disputants. It may be done as a part of mediation, or independently. Generally, the third party will work with the disputants to correct misunderstandings, reduce fear and distrust, and generally improve communication between the parties in conflict. Sometimes this alone will result in dispute settlement; at other times, it paves the way for a later mediation process. The conciliators main role is to attempt to establish sufficient trust between the parties to allow for negotiation. They would also help lower tensions, improve communications, and explore possible solutions. Also if the parties are unwilling to meet face to face the conciliator will pass messages between the parties. They will often give the parties expert advice and encourage them to make an agreement. ACAS are involved in this aspect of dispute resolution, particularly in employment issues. Conciliation is becoming more and more popular and is being widely used in disputes such as those between neighbours.
Negotiation is an exploratory and a bargaining process (planning, reviewing, analyzing, compromising) involving the parties communicating with each other, each with their own viewpoints and objectives, seeking to reach a mutually satisfactory agreement. This could be through the parties’ solicitors, usually before litigation has begun. They try to agree on what each side wants so as to avoid going to court. It is only after negotiations have failed that proceedings are begun. Negotiations may also be undertaken after a claim form has been issued in order to avoid a full court hearing.
Another popular alternative dispute resolution is tribunals. There can be two types of tribunals; administrative and domestic. They are similar to court hearings, but without all of the formalities. They are used in an attempt to hear a case in an efficient way, treating the issues seriously, but at the same time conducting the proceedings much more quickly than it would be in a court hearing thus cutting the costs. Domestic tribunals are used within professions to determine questions relating to the professional conduct of their members, and are usually of a disciplinary nature. Administrative tribunals have a much more general jurisdiction. These tribunals are regarded as being part of the welfare state provision; as new rights and responsibilities are created, so a tribunal is also crated to referee in disputes arising from the application of that law. Each tribunal is headed by a legally qualified chairperson who sits with two independent members, one representing positions of each side of the dispute. Tribunals are different from court hearings as they give rewards rather than verdicts. There decisions are also not bound on previous cases like court hearings although they could look over previous cases for assistance to their decision.
