Alternative Dispute Resolution

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Alternative Dispute Resolution

ADR is becoming increasingly popular as a resolution outside of court as it incurs less time and costs. Further, the courts encourage the use of ADR and can even penalise parties on costs if ADR has not been considered in certain circumstances.

Wellers’ dispute resolution solicitors are highly experienced in litigation but are equally qualified to resolve matters through ADR.   ADR methods considered and used by our litigation team include:

• Mediation – a process by which an independent third party, a mediator, is appointed to assist and facilitate resolution.  The mediator is a specially trained professional who is jointly appointed by the parties. Mediation can be used prior to or in parallel with the litigation process. It can be a relatively cost-effective and quick way to settle disputes provided that all parties are willing to compromise to achieve  a settlement.
• Arbitration – this is most frequently used in construction and insurance disputes. The process is governed by statute and is overseen by an arbitrator who generally has a professional background in the same field as the dispute. The arbitrator considers the evidence and makes an enforceable award which is binding upon the parties. Arbitration can therefore be preferable to mediation. Although more expensive than mediation arbitration is generally less costly than court proceedings.
• Adjudication – is used when disputes arise during the course of a contract or to deal with a limited issue swiftly and without jeopardising the remaining contract. The parties will agree at the time of entering into the contract that disputes will be referred to a third party adjudicator rather than to terminate the contract and commence court action. Adjudication is generally a quick process whereby an adjudicator is appointed and required to consider the parties’ evidence and make a decision at a convened hearing, all within a 28 day period.

Choosing an approach and understanding costs

The right approach depends partly on how much control you want over the outcome. Mediation may suit you if you want to negotiate settlement terms yourself; arbitration may suit you if you want an independent person to decide the dispute.

Your solicitor can help you weigh that choice against what you need from resolving the dispute. You may want scope to compromise, or need a decision where agreement seems unlikely. Wellers’ litigation experience supports advice on how your chosen approach can fit with any court proceedings already under way.

ADR may reduce the time and money spent resolving a dispute, though an unsuccessful attempt can add to the overall cost if further proceedings are needed. Considering the likely expense alongside the outcome you need helps you weigh up whether an approach offers value for your circumstances.