Advantages and Disadvantages of ADR

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Advantages and Disadvantages of mediation

Advantages

  • Mediation: Decision does not have to be strictly legal, method
  • Makes it easier for businesses to make agreements together in the future
  • High success rate, the Centre for Dispute Resolution says that up to 80% of cases are solved via mediation
  • Avoids adversarial conflict
  • Quicker, easier and cheaper than court also more flexible

Disadvantages

  • No guarantee the matter will be resolved
  • Going to court after mediation includes additional costs
  • Skilled mediator with natural talent is rare
  • Can become a bullying exercise
  • Amounts paid in mediation are often lower than would be agreed in court

Evaluation

Mediation is less legally binding, a softer form of dispute resolution and it has a high success rate where businesses are able to make future agreements together easily avoiding adversarial conflict however it is not guaranteed an agreement will be reached so therefore going to court after mediation will include additional costs as well as mediation could become a bullying exercise where awards are often lower than would be agreed in court 

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