Frequently asked questions
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What is ADR?
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Alternative Dispute Resolution is an umbrella term used to describe alternative, more conciliatory solutions to litigation including Conciliation, Mediation, Evaluative Mediation, Evaluation, Expert Determination and Arbitration.
Click here for definitions of ADR techniques.
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What is the difference between litigation and mediation ?
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Litigation is the act or process of bringing or contesting a lawsuit and as such concerns the enforcement of legal rights; judgments are made from a limited choice of options, which does not allow for the nuances of commercial or professional considerations. Mediation focuses on the needs and concerns underlying a dispute and not on legal rights alone. With the assistance of a neutral facilitator (or facilitators) parties have an opportunity to reach a solution that is mutually satisfactory and not binding, unless they wish it to be.
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What if we cannot agree ?
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ADR is a consensual process that relies upon the willingness of parties to work towards a mutually satisfactory solution. It has a very high success rate and the majority of cases are resolved to the satisfaction of all parties because of the inherent nature of the process and the skills and knowledge of the mediators/arbitrators involved.
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What happens if it doesn’t work ?
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Parties are free to walk away from an ADR process at any time – an option that is not available in a court of law. Resolution of the dispute through the courts also remains open to them, although it is very rare for parties who have initiated ADR to resort to litigation; even parties who do not settle usually consider the process itself to be of value in helping clarify each party’s position.
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What will it cost ?
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Costs are usually split equally between the parties involved in the ADR process. These generally include the cost of the mediator or arbitrator (or panel), the venue and refreshments. Parties are also liable for their own individual legal costs in preparing for and attending meetings, be they in-house or external lawyers. Experts or specialists might also be required to attend in which case their fees are borne by the party concerned.
Importantly, costs are dealt with as part of the settlement and can therefore be negotiated during the process and budgeted for. ADR offers significant cost savings in comparison to the cost of going to trial, where the costs are difficult to estimate and almost invariably higher.
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