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#19716 - 4. Bpc Civil Litigation 2023 2024 Adjudicative And Non Adjudicative Adr - BPC Civil Litigation

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4. CIVIL LITIGATION 2023-2024: ADJUDICATIVE AND NON-ADJUDICATIVE ADR

It is possible to enter ADR at all stages of litigation.

Non-Adjudicative Methods of Dispute Resolution

In a non-adjudicative ADR process, the parties to a dispute retain control of both process and outcome. It may just involve the parties, their lawyers and a mediator. It is normally confidential and any settlement is a matter of separate contractual agreement between the parties. This is more appropriate where the parties wish to retain control over outcomes as well as process.

METHOD FEATURES
Offer and Acceptance
  • If an offer is accepted an agreement is reached, saving time and money.

  • Can be done orally, but normally done in writing to ensure certainty as to the terms agreed.

  • Best suited to a case with relatively limited numbers of issues.

Negotiation
  • There is no set procedure to negotiation.

Benefits: Drawbacks:
  • Flexible

  • Cost effective

  • Clients retain complete control of the outcome

  • Depends on how well the case has been researched and analysed

  • Can depend on the skill of the negotiator

  • Can lead to a weak outcome for the client

  • The informality can lead to confusion

  • May fail if parties are unrealistic or the parties are too entrenched in their views

Mediation
  • A flexible, cost-effective, confidential process which can be arranged relatively speedily, in which a neutral third party (the mediator) facilitates discussions and negotiations between the parties in dispute within a relatively structured but flexible process, in a formal setting, during a defined period of time, all of which helps create an impetus for settlement.

  • Can take at any stage of the trial, even pending an appeal.

  • If the parties have fully defined the issues, disclosed key information and quantified the claim and any counterclaim, the best time for mediation is before proceedings are issued.

  • Involves the use of a neutral third party.

  • There are many different types of mediation.

  • Communication in mediation is made without prejudice.

Benefits: Drawbacks:
  • Neutral third party can help a party see the strengths and weaknesses of a case more clearly

  • Can help parties to step outside of an adversarial framework and entrenched positions

  • Can make possible offers and concessions look more acceptable

  • A mediator can help find a way forward in a relatively difficult dispute

  • There is time to review offers and options

  • Flexibility

  • In the absence of a confidentiality clause one will be implied

  • Success depends partly on the abilities of the mediator

  • Can increase costs if it fails

  • Needs to be approached with skill

  • Mediation may not work if both parties are deeply antagonistic

  • Can be difficult where one or both parties are not represented

Conciliation
  • Normally, a neutral third party who facilitates negotiation between parties.

  • May propose a decision if the parties cannot reach one, though this is likely to be non-binding.

  • May not be appropriate in debt claims, as there is no defence and it may be more advantageous to issue proceedings.

Early Neutral Evaluation/Expert Evaluation
  • A written assessment of some or all of the issues in a dispute by an independent third party who will provide an opinion of the merits of the case.

  • ENE can be carried out by a judge, in any court, with the aim of helping the parties to settle the case.

  • The Court can order ENE where one party does not consent.

  • The manner in which ENE is conducted is primarily decided by the evaluator, who may consult with the parties.

  • Both parties do not have to agree to ENR

Benefits: Drawbacks:
  • May facilitate an early and cost-effective settlement

  • Can be useful where the parties are quite far apart on a particular issue of law or fact with views that may become entrenched

  • Private

  • Work will be required to agree what materials and issues are put to the evaluator and success may depend on the quality of the report produced

  • Non-binding

Complaint or Grievance Procedure
  • Most large organisations have internal processes.

  • Parties should go through these processes first: e.g party should go through local authority complaints procedure before they contact the ombudsman.

  • A court may expect such a process to be used if it is potentially more cost-effective than litigation, but otherwise potential benefits and drawbacks will depend on the detail of the process.

Adjudicative Methods of Dispute Resolution

An independent third party reaches an impartial decision on the dispute. The ADR processes will provide more flexibility and more privacy than litigation. The choice of process will be set up by contractual agreement. This is the most appropriate ADR where the taking of an independent decision is important. But it is not necessarily quick or inexpensive if the process selected is similar to a trial.

METHOD FEATURES
Arbitration
  • Regulated by the Arbitration Act 1996.

  • Commonly used for commercial cases, it can also be appropriate in other areas where the parties want a binding decision to be reached using a particular approach.

  • Any application to stay proceedings for arbitration must be made by application notice to the court dealing with the proceedings.

    • The application must be made before taking any step to answer the substantive claim; no step is taken where D merely opposes an application or makes an application for an extension of time to serve its defence.

  • The onus is on C to show that the dispute ought not to be referred to arbitration. There are two thresholds before a stay will be granted:

    • Whether there is a concluded arbitration agreement

    • Whether the issue in the proceedings is a matter under the arbitration agreement is to be referred to arbitration.

  • An arbitration claim form must contain:

    • A concise statement of the remedy claimed;

    • Any questions on which the claimant seeks the decision of the court;

    • Give details of any arbitration award challenge and which parts are challenged;

    • Show that any statutory requirements have been made;

    • Identify if a costs order is sought; and

    • Specify the person on whom the form is to be served.

  • Arbitration form must be served within 1 month from the date of the issue.

  • An arbitral award made in England may be enforced by bringing an ordinary civil claim on the award in the High Court.

Benefits: Drawbacks:
  • Parties can select an arbitrator

  • The process is private and confidential

  • Can be tailored to meet the needs of the specific dispute

  • Each party selects what material is submitted

  • Can be relatively structured

  • Can be simple and cost-effective

  • Awards can be enforced like a judgment

  • Not necessarily cost-saving if a similar approach to trial is used

  • Will be bound by a third party decision,...

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