Alternative Dispute Resolution (ADR) is commonly used as an alternative to asking a judge or arbitrator to settle a dispute. There are different types of ADR. Your choice of which method to use will depend on several factors. Here Gemma Pickavant explains the general benefits of using ADR, as well as the different types of ADR available to you.
The courts now expect you to have considered ADR in almost all situations. There are also situations where it is compulsory to use ADR to try to resolve your dispute before starting court action.
What Are The Benefits Of Using Alternative Dispute Resolution?
- You’ll save time – you don’t need to wait for an available court date, you can agree to a meeting at a convenient time when both parties are available
- Save money – ADR is typically cheaper than the court process, and it’s not always necessary to instruct a solicitor
- Flexible – you can agree to a solution which suits both parties moving forward (e.g. a re-negotiated contract with a different payment schedule) whereas the court has a limited number of outcomes which tend to destroy relationships
- Confidential – proceedings are held in private and are normally on a ‘without prejudice’ basis, meaning that anything you say can’t be used against you if you do end up going to court
- No negative reputation – if you go to court, you may face negative media coverage
Are There Any Disadvantages To Using ADR?
There are a few disadvantages to using ADR that you should be aware of, including:
- There is no certainty of a binding outcome
- ADR is not always suitable, for example in a case where emergency relief is necessary or the opposing party is simply not prepared to engage in the process
- If ADR fails, you may consider it to have been a waste of time and money
You should be aware that if you do use a method of ADR, you must consider any limitation periods in bringing your claim to court. Using ADR does not add time to the limitation period.
It’s also possible for a ‘standstill agreement’ to be drafted, which can prevent the time period for limitation continuing to run, but this needs to be addressed and you should get legal advice to make sure that any such agreement is effective.
What Are The Types Of Alternative Dispute Resolution?
- Mediation (evaluative or facilitative)
- Expert Determination
- Early Neutral Evaluation
- Executive Tribunal