Alternative Dispute Resolution

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Alternative Dispute Resolution

Alternative dispute resolution (ADR) is an alternative way for people

to settle disputes instead of going through the courts. There are many

different types of ADR, which can be used to settle disputes. The most

common methods of ADR are Tribunals, Negotiation, conciliation,

mediation and arbitration.

Negotiation is the method that most parties in dispute take before

they take any further action. This normally conducted either directly

between the parties who have a dispute or through their lawyers.

Conciliation, this is where a conciliator takes an active role and

suggests methods of compromise for the parties.

Mediation, this ADR is conducted with an independent 3rd party

mediator who doesn’t impose a legally binding decision, but helps the

parties come to a compromise solution. Mediation has become a popular

way of settling disputes and is also now available on the onternet.

The cost of a mediator is about £1500, which is a lot more cost

effective than litigation, which can cost thousands in legal fees. The

Family law act 1996 made mediation compulsory within the divorce

process, however pilot schemes conducted proved it to be unpopular so

the Act was never brought into force.

Arbitration is a form of ADR in which two parties in a dispute agree

to an independent 3rd party making a legally binding decision to

resolve the dispute. Arbitration is especially important in commercial

business disputes, most arbitrators are legally qualified, so they

have a good knowledge of the law. The regulations of arbitration are

set in the Arbitration Act 1996, under this act courts and judges will

usually refuse to hear cases where there is an arbitration agreement.

There are three main ways in which arbitration can come about. Firstly

by contract parties signing a contract may include a clause sometimes

known as the Scott V Avery clause, which will state that in the event

of the two parties having a dispute they will use an arbitrator to

resolve the dispute. Secondly the two parties may decide to use

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