What is ADR (Alternative Dispute Resolution)?
Alternative Dispute Resolution is a generic description for the process of resolving a conflict or dispute informally and confidentially without the need to go to Court, it includes Mediation, Arbitration and Adjudication.
How does Mediation work?
Mediation often works best when cases are not “open and shut” and some of the legal aspects are grey.
- Both parties agree and appoint a Mediator.
- A meeting is agreed (this can be with or without legal representation).
- The Mediator has a joint meeting with both parties and their representatives 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 an 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.