Main points on the four alternative methods of dispute resolution (ADR)

  • Created by: simistar1
  • Created on: 04-02-15 10:06
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  • ADR
    • Negotiation
      • A quick confidential & cost effective way of settling disputes
        • if lawyers become involved in agreeing an 'out of court' settlement, it can make process lengthy & costly
      • useful in small scale disputes
        • Proceedings held in private and it is les formal
        • It only works if parties are willing to cooperate.
    • Mediaton
      • Neutral mediator helps parties to reach a compromise solution
        • Mediator consults with each party, explore needs of parties and carrying offers to and thro.
          • Makes it easier for companies to continue doing business
            • High number of cases solved through mediation. Over 80%
            • Amounts paid in mediation are often lower than amounts agreed
    • Arbitration
      • Dispute referred to independent third party
        • Expert (third party) desides outcome and makes an 'award'
          • Arbitrators decision is final and binding.
          • Limited right of appeal to high court if there were irregularities
          • The hearing is more informal than in court but arbitrators may act as a judge


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