What is Alternative Dispute Resolution in the UK?

Alternative dispute resolution (or ADR) is one way of dealing with disputes. Alternative dispute resolution refers to ways of resolving a dispute that does not involve going through court proceedings (such as if you were bringing a court action). There are several different ways that you can engage in alternative dispute resolution. Some common forms, for example, are mediation, conciliation, and arbitration.

This article will explain: 

• the main types of alternative dispute resolution;
• when it might be a good idea to use alternative dispute resolution; and
• some benefits and drawbacks.

Mediation

Mediation is one of the primary types of alternative dispute resolution. The courts usually recommend mediation before proceeding with expensive and lengthy court proceedings. It can be a quick way of solving a problem, as it encourages the parties to come to an agreement or ‘settlement‘. A settlement is a legally enforceable document, which lays out agreed terms between the parties. 

During the mediation process, the mediator is an impartial person who facilitates an agreement between the parties. Therefore, it can be an effective way of conflict management, as it does not require the parties to meet in person. Further, by coming to an agreement, you may be able to repair relations and work together in the future. 

Mediation also usually costs less than using the court system. Finally, mediation can give you greater control over the terms of your dispute. Instead of leaving the decision in the hands of a judge, you are given the power to decide: 

• whether to settle; and 
• how to settle.

Mediation Summarised

In summary, mediation is:

• the process of coming to an agreed solution with the other party;
• involves an impartial mediator, who will try to facilitate an agreement; and
• can be beneficial, as it gives you more control over the terms of the solution to your dispute. 

Conciliation

Conciliation, on the other hand, is free to use. It is similar to mediation but deals with more specific legal issues as opposed to general disagreements. It involves a conciliator, who performs a similar role to a mediator in facilitating agreement between parties. A conciliator will intervene with ‘conciliation’ sessions, and the conclusion will usually be through a court order of some kind. It is recommended that you seek formal legal advice to assess your circumstances if you are not sure whether to use mediation or conciliation. 

Arbitration

Arbitration is a private form of dispute resolution. It is similar to court proceedings because you will present your case to an independent arbitrator who will make a judgement. However, unlike a court proceeding, it is resolved privately instead of publicly.

The parties usually choose the independent arbitrator who will make the decision, and it is usually binding. As a result, it may be difficult to appeal the decision made by the arbitrator. However, one of the key benefits of going through the arbitration process is that you can avoid the large backlog of cases built up in the courts in recent years. Because of this, arbitration is much quicker than taking your case to court. 

There are further considerations you should know if you are going to opt for arbitration. For example, the arbitration process is usually much more confidential than going to court. This can be important if you want a quick and discrete solution to a dispute. 

Is Arbitration the Right Choice?

However, keeping this in mind, arbitration may not always be the best for your situation. In particular, arbitration is usually much better in technical scenarios where a specialist arbitrator is appointed. Making sure that your arbitrator is good for the specific dispute is highly important. This will make the result of the arbitration more predictable. Additionally, having predictability is important because an arbitration process does not guarantee an outcome that is truly premised on facts and law, as a court proceeding does. 

On the whole, it is worth assessing whether an arbitration process is best for your business. Further, it will be worth checking if there is an arbitration clause in the contract between you and the disputing party. An arbitration clause is a term of a contract which states when you might require an arbitration process to begin. 

Key Takeaways

Alternative dispute resolution services are an alternative to the court process. They can be a more cost-effective and time-effective way of dealing with disputes. They do, however, come with their own downsides. For example, they may require compliance from the other party, or they may provide slightly less predictable results if the issue is not technical. It is usually worth assessing alternative dispute resolution services before proceeding to court.

If you need advice regarding alternative dispute resolution, LegalVision’s experienced dispute resolution lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

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