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.

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. Courts strongly encourage parties to utilise methods of ADR and 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.

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

Whilst each type of ADR has its own complexities, and could be explained in detail, they can each be briefly described in the following way:

• 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.
• Arbitration is where an arbitrator (usually an expert in 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.
• Early Neutral Evaluation can be completed either by a judge, or be done privately. Whilst it is not binding on the parties, it gives an opportunity for 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.

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.

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.

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

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