1): Different Options for Dispute Resolution

Question 1

What is the aim of Alternative Dispute Resolution (ADR)?

Answer 1

⚖️ Litigation = last resort
📩 Parties must consider ADR (e.g. mediation, arbitration)
💸 ADR is usually faster and cheaper
❌ Unreasonable refusal to engage in ADR may be penalised by court

Question 2

Can the court compel parties to engage in non-court ADR?

Answer 2

yes, following the decision in Churchill v Merthyr Tydfil Council [2023]

Question 3

What are the factors to consider to justify refusal to consider ADR?

Answer 3

⚔️ Nature of the dispute makes ADR unsuitable
⚖️ Case has strong merits
🤝 Other settlement options already tried
💸 ADR costs would be disproportionate
⏳ Delay from ADR would cause prejudice
❌ ADR has no reasonable prospect of success

Question 4

Who has the burden of proving that refusal of ADR is unreasonable?

Answer 4

unsuccessful party

Question 5

What are the consequences of a finding of unreasonable refusal of ADR?

Answer 5

Even a successful claimant may face penalties, such as:

❌ No costs awarded
💸 Paying part/all of opponent’s costs
📈 Higher interest on damages
⏳ Loss of interest on damages

Question 6

How is arbitration triggered?

Answer 6

pursuant to arbitration clause in contract

OR

parties agree to arbitration once a dispute has arisen

Question 7

What happens once the parties agree to trigger arbitration?

Answer 7

⚖️ Arbitrator appointed to resolve dispute
🗣️ Both sides heard
📜 Decision is binding – no court re-hearing
✅ Winner can apply to court to enforce the award

Question 8

What are the pros and cons of arbitration?

Answer 8

✅ Pros:

⚖️ More formal than mediation but less formal than litigation
⏱️ Faster than court
🤝 Confidential – preserves business relationships

❌ Cons:

🔍 Not ideal for complex legal issues/injunctions
💷 May not be cheaper than litigation
📁 Limited disclosure – key info may be withheld

Question 9

What happens when the parties want to engage in mediation?

Answer 9

👥 Mediator appointed (independent 3rd party)
🤝 Aim: help parties reach agreed settlement
📜 May or may not be binding
❌ If non-binding → parties can withdraw anytime and go to court

Question 10

What are the pros and cons of mediation?

Answer 10

✅ Pros:

📝 Flexible, informal, and confidential
🤝 Less damaging to ongoing relationships
🎯 Allows for creative settlements beyond legal remedies

❌ Cons:

⚖️ Not suitable for legal rulings or injunctions
❌ No binding outcome unless parties agree

Question 11

What is litigation?

Answer 11

⚖️ Last resort if ADR unsuitable
🧾 Formal court process → trial + judgment
❗ Must comply with CPR or risk sanctions/penalties
📜 Judgment is binding
-Parties may apply for permission to appeal

Question 12

In which court are civil claims brought?

Answer 12

County Court or High Court

Question 13

What are the disclosure requirements in litigation?

Answer 13

📂 Parties must disclose all relevant evidence (helpful or harmful)
❌ Failure to comply may lead to evidence being excluded

Question 14

What are the 5 main stages of the litigation process?

Answer 14

1. Pre-Action Conduct
2. Commencement & Defence
3. Case Management
4. Trial
5. Post-Trial

Question 15

What happens at Pre-Action Conduct stage?

Answer 15

Follow Pre-Action Protocols + Practice Direction

Question 16

What happens at the Commencement & Defence stage?

Answer 16

📄 Claim form + particulars served by claimant

🛡️ Defendant may file defence (within 14/28 days (if AoS filed)) from PoC

Question 17

what happens at Case Management stage?

Answer 17

⚖️ Court sets directions & deadlines
-Includes disclosure, witness/expert evidence

Question 18

What happens at Trial Stage?

Answer 18

👨‍⚖️ Judge hears case
Decides liability, damages (quantum), and costs

Question 19

What happens at Post-Trial stage?

Answer 19

⚖️ Appeal possible
💸 Enforcement if payment not made