Alternative Dispute Resolution and Settlement Agreements
When a claim is disputed, litigation should be a last resort, and only used when all other avenues of resolution have been explored. Our experienced Alternative Dispute Resolution Solicitors can offer advice on the most commercially effective way to resolve your dispute and will deal with your matter efficiently and in a cost effective manner.
What is ADR (Alternative Dispute Resolution)?
Alternative Dispute Resolution is a generic description for the process of reaching a settlement agreement to resolve a conflict or dispute informally and confidentially without the need to go to Court. It includes Mediation, Arbitration and Adjudication.
Mediation is the Most Common Form of Alternative Dispute Resolution. How Does it Work?
- Mediation often works best when cases are not “open and shut” and some of the legal aspects are grey. Both parties must agree to appoint a Mediator. A meeting is agreed (this can be with or without legal representation), with the objective of reaching a settlement agreement.
- The Mediator has a joint meeting with both parties and their legal representatives (in other words the Alternative Dispute Resolution Solicitors) so each side can state their position. The parties retire to separate rooms whilst the Mediator negotiates with both sides to encourage a settlement.
If a settlement is agreed it is incorporated into either a settlement agreement or, if proceedings have already commenced, a Court Order.
Who pays for the Mediation?
The cost of Mediation is split equally between the parties.
What happens if one side is unreasonable?
The Courts positively encourage Mediation to allow parties the opportunity to resolve their disputes. However, both sides need to approach this process with an open mind and be willing to compromise.
If a party unreasonably refuses to mediate, they can be penalised in costs by the Judge following the Trial if the matter proceeds that far.
What is the difference between Mediation and Arbitration or Adjudication?
Mediation uses a ‘neutral’ third party to encourage but not impose a solution to the dispute.
Arbitration and Adjudication are closer to the Court process as they involve the imposition of a solution by a third party.
Contact our Alternative Dispute Resolution Solicitors
Our Alternative Dispute Resolution Solicitors are experienced in mediation as well as arbitration ad adjudication. If you or your company is suffering from a late payment issue that has been disputed, please contact us or call us on 01922 616306 for a FREE initial discussion.
The sooner you get in touch, the faster we can work to recover the money owed to your business.
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