Alternative Dispute Resolution (ADR), is a way of trying to resolve a dispute without going to court.

Going to court should always be viewed as a last resort to solve any disputes. Whilst there are times that it can be necessary, there are usually other options to consider before pursuing litigation, including ADR methods.

What is ADR?

Alternative Dispute Resolution, often referred to as ‘ADR’, is a way of trying to resolve a dispute without having to go to court. The general idea behind ADR is that the parties can agree a settlement at an earlier stage in the legal proceedings, or sometimes without even starting legal proceedings. In short, it can help save money.

In legal disagreements, courts strongly encourage parties to try ADR methods first. Parties will often have to justify to the court why they are refusing to use ADR, with the possibility of facing sanctions for their refusal.

Alternative Dispute Resolution: The Pros & Cons

Whilst each type of ADR has its own complexities, and could be explained in detail, the following pros and cons apply to most types of ADR. In short, ADR can be cheaper, faster and less stressful than litigation. However, it is not suitable for everyone and can potentially hinder the process of resolving some disputes.

Asking an experienced Dispute Resolution solicitor can help you decide if ADR is right for your case.

Key benefits of ADR:

• It is less expensive than pursuing litigation.
• It can help maintain a positive relationship between the parties.
• It can obtain a faster result compared to litigation.
• Many forms of ADR are confidential processes, which maintains privacy for clients.
• The neutral third party assisting is often an expert in their field.

Disadvantages of ADR:

• If ADR is unsuccessful, it can delay the court proceedings.
• Except for arbitration, ADR is not usually legally binding.
• All parties to the dispute must agree to using ADR.
• ADR does not guarantee a resolution to the dispute.
• An ineffective third party can potentially hinder a resolution.

Types of ADR Available

There are different types of ADR (listed below). They all work in different ways, have their own pros and cons, and each type is suited to differing types of dispute – there is no one size fits all when it comes to ADR!

• Mediation is where a neutral person will assist the parties to discuss the differences in their legal position to help them to come to an agreement. It’s often faster than court, but not legally binding.
• Arbitration is where an arbitrator (usually an expert in the field of the dispute) will make a decision based on information given to them by the parties to the dispute. The decision made by the arbitrator is legally binding on the parties. Although legally binding, it can be more costly than mediation.
• Early Neutral Evaluation can be completed either by a judge, or be done privately. Whilst it is not legally binding on the parties, it gives an opportunity for the strengths of the case to be provisionally considered, which indicates which side would be likely to win if the matter were to go to trial. 
• Independent negotiation is where an independent negotiator will help the parties to negotiate and reach an agreement. It can help keep relationships intact, depending on the skill of the negotiator.

Is ADR right for my case?

ADR can be suitable for claims of any size (large or small), and in July 2022 the government announced that it is looking at expanding a requirement to mediate beyond the current Small Claims Mediation Service (which is currently for small claims valued at under £10,000). This therefore makes understanding, and utilising, ADR ever more important as a tool for resolving disputes quickly, without needing expensive litigation in court. 

Our dispute resolution solicitors at TV Edwards LLP are always happy to provide reliable, independent legal advice for disputes that arise. This includes advising on appropriate ADR options that can be explored.

Speak to our solicitors for tailored advice based on your case and goals.

Disclaimer: The information on the TV Edwards website is for general information only and reflects the position at the date of publication.

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