Are you in a dispute and would welcome the opportunity to design an outcome which suits both sides? David Mallinson, Head of Dispute Resolution at Girlings explains why #AlternativeDisputeResolution or #ADR has become increasingly popular with clients and lawyers.
ADR is popular as it focusses on the issues in the case – whether they be legal issues or factual issues – ADR can offer the client another solution. As David explains, often the biggest hurdle for a client is to appreciate that actually discussing the issues and trying to reach a solution with the other side is not actually a sign of weakness.
The popularity of #ADR is also driven by the Courts, who are increasingly emphasising the need for parties to resolve their disputes without going to court, If at all possible. #AlternativeDisputeResolution can be used in conjunction with Litigation, or as a stand alone process. Due to the relatively high cost of traditional forms of Litigation, in particular Court proceedings, parties to a dispute are encouraged to attempt to resolve the issues by ADR in a commercially motivated and co-operative way wherever possible. To encourage the use of ADR, cost penalties can be imposed by a Court on a party that unreasonably refuses to engage in some form of ADR process.
The most common forms of ADR include: Arbitration; Mediation; Early Neutral Evaluation; or Without Prejudice Negotiation. Mediation, perhaps the most frequently proposed, involves the use of an impartial third party (a mediator) to facilitate a resolution through a confidential process. Costs are still incurred in relation to any of these procedures but they are certainly less than would be incurred by pursuing a claim through to a formal trial process.Back to videos