In the United Kingdom, Alternative Dispute Resolution (“ADR”) has become an increasingly common and important way for individuals and organisations to resolve conflicts. The below information should assist you in determining if ADR is the right solution to resolving your conflict.
What is Alternative Dispute Resolution?
ADR is a quicker, less formal way to resolve conflicts that uses a variety of processes and techniques to aid parties in settling their legal disputes outside of court. ADR often involves a neutral third party and may lead to legally binding decisions. Participating in ADR processes does not negate your right to approach a court or tribunal to resolve your dispute it is merely another avenue that can be explored.
What disputes can be referred to ADR?
ADR is used to settle disputes between businesses and their suppliers, employers and employees, or in divorce negotiations. In certain civil claims, pre-action protocols must be followed to exchange information and resolve disputes without legal proceedings. Litigation should be a last resort, and parties should consider making a Part 36 offer before initiating proceedings. ADR can be considered at any stage, and parties’ refusal to participate in ADR could lead to adverse orders from the court or lead the court to stay proceedings until ADR is completed.
What are the different types of ADR?
The most common forms of Alternative Dispute Resolution (ADR) are negotiation, mediation, arbitration, early neutral evaluation, and an ombudsman in consumer-related matters.
Mediation involves a neutral third-party mediator who facilitates negotiations between the disputing parties to help them reach a mutually agreeable resolution. Mediation is a voluntary, confidential process that allows the parties to maintain more control over the outcome.
Arbitration is a more formal ADR process where an independent arbitrator reviews evidence and arguments from both sides and renders a binding decision. Arbitration can be faster and less expensive than going to court.
Negotiation involves direct negotiations between the parties themselves, without a third-party intermediary. Parties work together to find a solution that meets both of their needs.
In Early Neutral Evaluation the parties present their case to a neutral third-party who provides an assessment of the strengths and weaknesses of each side’s position. This can help the parties better understand the merits of the case and facilitate settlement discussions.
Why choose ADR to settle your dispute?
ADR offers a fair, flexible, and cost-effective way to resolve disputes. It aims to relieve courts and tribunals’ matter load while still ensuring parties have the right to a fair trial. The increasing use of ADR in the UK is partly driven by court reforms and initiatives that have encouraged its adoption. For example, the Civil Procedure Rules implemented in 1999 require parties to consider ADR before going to court.
What role will you play in the ADR process?
In any ADR process, all parties must make a genuine effort to reach an agreement. This involves approaching the process with an open mind, listening to each other’s points of view, making suggestions, discussing issues in dispute openly, and being available for the ADR sessions. The decisions made in ADR require your full attention and participation, as it is not an “easier” alternative to courts or tribunals.
How much will ADR cost?
Initially, the costs of the ADR process will be shared equally between the parties, but the ADR practitioner may make an award as to costs as part of their decision unless agreed upon by the parties beforehand.
What is the role of the ADR practitioner?
The ADR practitioner guides both parties. You should ask about their areas of advice to ensure impartiality. The practitioner may charge for their services and must be transparent about the ADR process used. If you have concerns about their conduct, you can report them to professional bodies.
Is ADR right for you?
ADR is not appropriate for all types of disputes. Some cases may require the authoritative decision-making power of a court or involve matters of significant public interest. However, for many civil and commercial disputes, ADR has become an essential tool for conflict resolution in the UK.
If you want to know more about ADR and help determining if this is the right option to resolve your dispute, please do get in touch now.
