ADR

Question 1

Explain Arbitration (with statute)

Answer 1

Arbitration Act 1996
- Heard by neutral arbitrator(s)
- Binding decision
- Freedom to choose all variables
- Courts refuse claims when a Scott v Avery Clause is present

Question 2

Advantages of Arbitration

Answer 2

• Private
• Parties can choose arbitrator
• Parties can decide when/how dispute is heard
• Cheaper/quicker than court
• legally binding

Question 3

Disadvantages of Arbitration

Answer 3

• No legal aid available
• Decision not always enforceable
• Expensive commercial arbitrators

Question 4

Explain Negotiation

Answer 4

• Parties negotiate settlement before court action
• done though any suitable method
• can happen right up to court date

Question 5

Explain mediation

Answer 5

• Independent/neutral third party facilitates parties reaching a settlement
• Common in family disputes (Family law Act 1996)
• Common in commercial disputes

Question 6

Explain Conciliation

Answer 6

• Like mediation but conciliator plays more active role
• Offers suggestions, meets parties individually etc
• offers non binding decision for how case should be settled

Question 7

Advantages of less formal ADR

Answer 7

• Keeps parties on good terms
• Cheaper than court
• Decisions made in best interest of both parties

Question 8

Disadvantages of less formal ADR

Answer 8

• Legal aid not available
• If doesn’t work, still go to court - just delays process
• Outcomes not binding