1. Comparing with the court
2. (Directly after example put Adv disadv of that particular ADR), compare ADR
among themselves
Alternative methods of resolution (ADR) are methods of resolving a dispute without using the
courts. Civil Rule 1.4 requires courts to encourage parties to use ADR procedures, thereby
helping them to settle the whole or part of the case under Civil procedure rule 26.4 which allows
settlement by ADR by the suspension of courts for 1 month. In Halsey v Milton Keynes General
NHS Trust, the Court of Appeal held that courts do not have the power to force parties to use
ADR as this is a breach of Article 6 of the European Convention on Human Rights.
Arbitration is when parties refer to a third party other than a judge, like a lawyer or an expert in
the field, to make a legally binding decision on the issue in dispute. S.1 of the Arbitration Act
1996 sets out that the object of arbitration is to obtain the fair resolution of disputes without
unnecessary delay or expense. The number of arbitrators are chosen by both parties, either a
panel of two to three or a sole arbitrator (s 15), only one arbitrator will be used in accordance
with the Arbitration Act 1996 if an agreement cannot be met.
There are different types of arbitration, like trade association arbitration schemes and
commercial arbitration. The Director-General of Fair Trading has a duty to promote codes of
practice for trade associations under the Fair Trading Act 1973. For example, the Association of
British Travel Agents (ABTA) offers impartial conciliation for disputes between tour operators
and consumers. Many commercial contracts include a Scott v Avery clause stating that any
disputes will be settled through arbitration whereby parties must abide by it. The award of the
arbitrator is binding and the courts can be called to enforce the award. A legal ombudsman
allows individuals to investigate the decisions of public bodies.
Arbitration is relatively inexpensive and is usually done so that the case remains private without
any publicity. It is also flexible, so parties can choose agreements most suited to the situation,
resulting in a more relaxed and informal hearing. Moreover, The award is normally final and can
be enforced through the courts. However, an unexpected legal point may arise where
non-lawyer arbitrators are not suited to make decisions. Arbitration may also become expensive
if parties resort to formal hearings with professional arbitrators. The rights of appeal are also
limited.
Mediation is a form of ADR where a third party will assist the parties in reaching a mutually
agreed settlement. Parties can withdraw from the mediation process at any time. The mediator
will meet with both parties to determine the common ground and carry offers to and fro. A more
formal mini-trial can also be conducted which will be judged by a neutral decision-making
executive.
Commercial mediation services also exist. Examples include the Centre for Effective Dispute
resolution and the Online Dispute Resolution. A good example of mediation is divorce cases.