Discuss the Processes Available in Alternative Dispute Resolution
Discuss the processes available in alternative dispute resolution and explain its advantages and disadvantages
Alternative Dispute Resolution
Alternative Dispute Resolution (ADR) includes methods of processes and techniques that are used to resolve disputes or disagreements outside the jurisdiction of the law. As explained by Paul Latimer (p 51 of the Australian Business Law CCH Handbook 2006) The Alternative Dispute Resolution Association of Australia has defined ADR as meaning ¡§dispute resolution by processes:
a) which encourage disputants to reach their own solution and
b) in which the primary role of the third party neutral is to facilitate the disputants to do so.¡¨
The main purpose for an alternative dispute resolution is to provide various methods of dispute management to litigation that are in place today . The main processes available are mediation, conciliation (though it can be used interchangeably with mediation as it¡¦s considered a form of mediation), independent expert appraisal or evaluation, arbitration (though technically is not included as ADR and will be discussed further under ¡¥Arbitration¡¦) and mini trials . There are many advantages and disadvantages for these methods. Most commonly referred to advantages are:
X Majority of cases are resolved at a significantly lower cost than litigation.
X Majority of cases are resolved at a significantly lower percentage of time involved in litigation.
X Less formal and quicker than court proceedings.
X Many cases are dealt with in privacy, and public or media interest is strictly prohibited.
Disadvantages include:
X Incompetence or bias on the part of the intermediary could lead to wrong settlement of negotiations (mediation)
X Wrong decisions can be made or a denial of natural justice (arbitration)
X Also, common occurrences in both mediation and arbitration is the incorrect application of legal principles (Partly due to reason of technical experts who don¡¦t have the
Alternative Dispute Resolution
Alternative Dispute Resolution (ADR) includes methods of processes and techniques that are used to resolve disputes or disagreements outside the jurisdiction of the law. As explained by Paul Latimer (p 51 of the Australian Business Law CCH Handbook 2006) The Alternative Dispute Resolution Association of Australia has defined ADR as meaning ¡§dispute resolution by processes:
a) which encourage disputants to reach their own solution and
b) in which the primary role of the third party neutral is to facilitate the disputants to do so.¡¨
The main purpose for an alternative dispute resolution is to provide various methods of dispute management to litigation that are in place today . The main processes available are mediation, conciliation (though it can be used interchangeably with mediation as it¡¦s considered a form of mediation), independent expert appraisal or evaluation, arbitration (though technically is not included as ADR and will be discussed further under ¡¥Arbitration¡¦) and mini trials . There are many advantages and disadvantages for these methods. Most commonly referred to advantages are:
X Majority of cases are resolved at a significantly lower cost than litigation.
X Majority of cases are resolved at a significantly lower percentage of time involved in litigation.
X Less formal and quicker than court proceedings.
X Many cases are dealt with in privacy, and public or media interest is strictly prohibited.
Disadvantages include:
X Incompetence or bias on the part of the intermediary could lead to wrong settlement of negotiations (mediation)
X Wrong decisions can be made or a denial of natural justice (arbitration)
X Also, common occurrences in both mediation and arbitration is the incorrect application of legal principles (Partly due to reason of technical experts who don¡¦t have the
Bibliography: Primary „X Terry and Guigni, Business, Society and the Law (2003) „X Paul Latimer, Australian Business Law CCH Handbook (2006) „X Clive Turner, Australian Commercial Law (2005) „X Vermeesch & Lindgren, Business Law of Australia (1995) Secondary