This chapter considers alternative dispute resolutions (ADR), which are ways that a dispute can be settled outside the court process. The chapter considers the growth of ADR and how the courts now require litigants to consider ADR before commencing legal action. The courts have wide powers to encourage ADR and this chapter considers these powers and why the courts try to encourage ADR. The key forms of ADR are then presented, together with an analysis of their strengths and weaknesses.
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Chapter
19. Alternative Dispute Resolution
Chapter
1. Introduction
This introductory chapter provides a background on alternative dispute resolution (ADR), which refers to the full range of alternatives to litigation that might be available to a lawyer and client for resolving a civil dispute. In 1998, ADR was formally acknowledged by the Civil Procedure Rules (CPR) as being potentially relevant to all civil actions. Indeed, there is strong government support for the use of ADR in providing cost-effective options for civil dispute resolution. Over the last few decades there has been fast and increasing growth in the use and variety of forms of ADR. ADR options offer many potential advantages in terms of saving time and costs, providing confidentiality, and increasing client control. However, ADR also has some potential disadvantages, especially if it is not used appropriately, and some of the strategic opportunities available in litigation may be lost.
Chapter
3. Factors Influencing the Selection of an ADR Option
This chapter identifies the factors influencing the selection of an alternative dispute resolution (ADR) option. A lawyer has a general professional duty to give legal advice on ADR options, and there are identifiable points in a case and in litigation where this is particularly important. It is good practice to have a coherent strategy as regards potential use of ADR to resolve a dispute. There are many factors that may be relevant to the use of ADR, and to which form of ADR is most appropriate, including cost, the nature of the dispute, and the objectives of the parties. It is important to select the ones relevant to each case. The chapter then considers the various concerns which may be expressed in relation to ADR, as well as the various ways to encourage a reluctant opponent to use ADR.
Chapter
8. The Sanctions for Refusing to Engage in ADR Processes
This chapter assesses the possible sanctions for refusing to engage in alternative dispute resolution (ADR) processes. The court will look at whether a party complied with the requirements of Practice Direction—Pre-Action Conduct and the Pre-Action protocols in making decisions about costs. If a party unreasonably refuses to consider ADR, before issue, after issue, or after judgment and pending appeal, they can be penalized in costs. If a successful party unreasonably refuses ADR, they may be deprived of some or all of their costs or ordered to pay some or all of the losing party's costs, including costs on an indemnity basis. Pulling out of an ADR process at the eleventh hour is likely to be judged unreasonable conduct and may result in an adverse costs order. Moreover, the court will not consider ‘without prejudice’ material in considering costs, unless privilege is waived by all the parties to the dispute, or the correspondence is explicitly written on the basis that it is ‘without prejudice except as to costs’.
Chapter
8. The Civil Justice System
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. This chapter discusses the civil justice system. Civil justice is concerned with the private dispute between individuals in the absence of the state. It seeks to solve disputes before they have had a chance to enter the legal structure, through the use of alternative dispute resolution (ADR). Civil justice follows a similar pattern to its criminal counterpart; however, some of the procedural rules—specifically those relating to evidence—appear to be much more relaxed than in the criminal justice system. During the process of civil justice, a number of issues may arise which would bring the procedure to an end. These issues include ADR, through which parties may decide to settle the case at any point; default judgment, wherein judgment may be entered against a defendant at any point in the proceedings; and offers to settle, known as ‘Part 36 Offers’, in which an individual makes an offer to another without prejudice.
Chapter
4. Dispute Resolution for Businesses
This chapter identifies courts and tribunals as the place where the laws discussed in the previous chapters are interpreted and utilized in the legal system. The jurisdiction of the courts and the personnel within them are described and a comparison is drawn between these forums for the administration of justice. It is important for those in business to be aware of the work of at least one tribunal—the Employment Tribunal, as many employment-related disputes ultimately end up here. Also, the courts in the English legal system, and the increasing use of alternative dispute resolution mechanisms, are relevant to businesses as they are used either to settle disputes or to avoid them altogether. Because the term ‘court’ is difficult to define in any practical sense, the chapter uses a description of what a court does.
Chapter
1. The English legal system
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter discusses the English legal system. It provides an overview of the courts in the civil and criminal divisions, and their hierarchy. It discusses the source of law, delegated legislation, the impact of membership in the EU and the Human Rights Act 1998, and alternative forms of dispute resolution (ADR). The implications of ADR are increasingly important in civil disputes and essential between businesses where traditional court action can destroy commercial relationships.
Chapter
11. Alternative dispute resolution
This chapter examines the ethical issues raised by alternative dispute resolution (ADR). It first looks at the process of negotiation, which is the way in which lawyers resolve most disputes. It then considers other forms of ADR, including mediation and, briefly, arbitration. The chapter highlights the advantages and disadvantages of these processes. There are particular concerns where one party is in a stronger bargaining position, for example in a family case which has involved domestic abuse. There is also much debate over the role a mediator should play, andin particular over whether a mediator should take a neutral role or persuade the parties to reach what they regard as a fair settlement. It also considers what attracts clients to use these forms of dispute resolution.
Chapter
13. Justice in the Modern Administrative State
Titles in the Complete series combine extracts from a wide range of primary materials with clear explanatory text to provide readers with a complete introductory resource. This chapter discusses the role of a range of accountability methods to scrutinize the executive’s use of power. This includes the work of the Parliamentary Commissioner for Administration, who is now also known as the Parliamentary Ombudsman, the role of tribunals in contrast to courts, of public inquiries and of alternative dispute resolution mechanisms too. It also examines the limitations of each of these methods, and how they may complement each other to provide different forms of scrutiny.
Chapter
2. Overview of ADR Options
This chapter presents an overview of the alternative dispute resolution (ADR) options available to parties to a dispute in England and Wales, outlining the most commonly used processes. A lawyer should be familiar with the range of ADR options and be able to advise a client on appropriate use of ADR. This includes familiarity with each process, when it should be used, who might attend, and key strengths and weaknesses. ADR options can be broadly divided into processes that are adjudicative (where a third party takes a decision) and those which are non-adjudicative (where the parties approve any proposed settlement). The main non-adjudicative options are negotiation and mediation. The main difference between the two is that a negotiation is normally conducted by lawyers, whereas a mediation includes a neutral third party. Meanwhile, the main adjudicative options are arbitration and expert determination.
Chapter
4. Funding ADR Procedures
This chapter discusses the issue of funding alternative dispute resolution (ADR) procedures. Costs are a major motivation for undertaking ADR, but the costs position can be quite complex. Indeed, the separate elements of costs must all be considered. It is government policy to make more use of ADR, including online ADR, for lower-value cases so that dispute resolution is cost effective. Although a process like arbitration can be expensive, most ADR processes are relatively inexpensive, and information on costs is quite easily available from ADR providers. Ultimately, it is important for the lawyer to make an overall analysis of the financial position and risks to assist the client in taking an informed decision about litigation and ADR options. Costs may be considered as part of a negotiated or mediated settlement.
Chapter
7. The Approach of the Courts to ADR
This chapter focuses on the approach of the courts to alternative dispute resolution (ADR). Parties are required to consider ADR before proceedings are issued by the protocols and Practice Direction—Pre-action Conduct. If ADR is not undertaken before issue, then it should be considered at the track allocation stage (when all the statements of case have been filed), and again after exchange of documents, and also when witness statements and expert evidence have been exchanged. The court will actively consider whether attempts have been made to settle the dispute by ADR at any case management conference, and may direct the parties to attempt ADR. If the parties reject ADR, before issue or at any stage of the litigation, they should have reasonable and cogent reasons for doing so and may be required to explain these reasons to the court. Moreover, the courts will seek to uphold and enforce ADR clauses in contracts.
Chapter
9. Recovery of ADR Costs in Litigation
This chapter addresses the recovery of alternative dispute resolution (ADR) costs in litigation. The court have power to make an order that the costs of interim applications in connection with ADR should be borne by one party if that party has acted unreasonably, otherwise the usual order will be ‘costs in the case’. If the parties embark on an ADR process and make a clear agreement as to their respective liabilities for the costs of that process, the court will not look behind it. Meanwhile, if the parties make no agreement about the costs of an ADR process, the court can determine liability for the costs of the ADR process. If the parties reach agreement on the main issues by an ADR process and agree that ADR costs should be determined by the court, the court is likely to make no order for costs (meaning each party will bear their own costs) unless it can determine, without trying the case, who would have won at trial.
Chapter
4. ADR, Settlement, and Part 36 Offers
In recent years alternative dispute resolution (ADR) has evolved from being a fallback in relation to litigation into an important alternative that may be the preferred option in some cases. This chapter outlines the interface between litigation and ADR, and puts litigation into the context of settlement options. ADR is only a complete alternative to litigation where a full adjudicative option such as arbitration or expert determination is used. In most disputes it is more likely that a case will move between litigation and ADR processes, or be subject to both at the same time where an offer has been made and remains open, but the litigation process continues. The chapter discusses the main types of ADR and their fit with litigation; framing an attempt to settle; drawing up terms of settlement; and making Part 36 offers, especially when costs are a major concern in litigation.
Chapter
6. Financing Litigation
This chapter focuses on funding options for litigation. Expense is one of the biggest issues relating to litigation. The high cost of litigation has perhaps been tolerated to some extent out of respect for the expertise of lawyers and because of problems in finding a consensus on how litigation is best funded. The detailed work of the Jackson Review of Civil Litigation Costs has provided a strong basis for development, and there have been numerous expressions of judicial concern with regard to the high level of costs. The chapter begins by considering the sources of legal expense, the parties that bear the expense, and the problems that arise with regard to the expense of litigations. It then discusses funding options for litigation, including self-funding, insurance, conditional fee agreements, damage-based agreements, third party funding, and public funding. It also presents options for funding alternative dispute resolution (ADR).
Book
A Practical Approach to Effective Litigation analyses the key skills needed to handle a case effectively. At a time of rapid and wide-ranging change in the delivery of legal services, the current edition reworks the text to take into account the implications of the implementation of the Jackson Review, and to see effective litigation clearly in the context of concerns about funding, case management by the court, costs, and the growing use of alternative dispute resolution. The volume has a strong focus on the needs of the legal practitioner, the decisions to be taken at each stage of a case, and the criteria to apply in making those decisions. This is all securely based in references to relevant Civil Procedure Rules and decided cases, with checklists and commentary to assist in the project management of a case. The work also focuses on the skills a lawyer needs to work effectively. This includes skills in dealing with a client, drafting legal documents, and presenting a case in court. Throughout the work the emphasis is on demonstrating how to use law effectively, how to develop a case, and how to present persuasive arguments. Lawyers operate in an increasingly complex environment, faced with challenges in funding a case, in managing a case to avoid sanctions, and in using complex rules to best effect. The work addresses the use of legal knowledge and skills within this rapidly changing context, bearing in mind not least that the pace of change is likely to continue with the developing use of IT, and the widening use of alternative business structures.
Chapter
20. Negotiation skills
This chapter introduces the skills needed to prepare for and conduct an effective negotiation, including the research process and different negotiation styles. It also considers the problems that can arise during negotiation and outlines a range of strategies that can be used to overcome them. In essence, it is a step-by-step introduction for those with no previous negotiation experience as well as a source of advice for the more experienced negotiator. A range of examples is used to demonstrate the skills involved in negotiation.
Chapter
2. The Court System and Alternative Dispute Resolution
This chapter discusses the English court system, civil disputes, and alternative dispute resolution. The courts in England and Wales form a hierarchy. At the lowest level are the Magistrates’ Courts and the County Courts, then the Crown Court and High Court, then the Court of Appeal, and finally the Supreme Court. The chapter considers the role of the Court of Justice of the European Union in interpreting EU law within Member States. It explains the position of the European Court of Human Rights, which deals with allegations of state breaches of the European Convention on Human Rights. Civil disputes arise in every area of business. An explanation of the civil procedure rules from commencing a claim to enforcement of a court judgment is provided. The chapter concludes with a discussion of alternative methods of dispute resolution including arbitration, mediation, and conciliation.
Chapter
2. The administration of the law
This chapter examines the administration of the law under the English legal system. It aims to clarify how, and by whom, the law is administered. It identifies the structure, jurisdiction, and composition of the various courts, and also discusses how the tribunals system fits into the administration of the law. In addition, the chapter looks at less formal approaches to dispute resolution, such as alternative dispute resolution. This chapter describes the duties and responsibilities of the different members of the legal profession including the judiciary, the law officers, barristers, solicitors, legal executives, and paralegals. It also considers the appellate procedure.
Chapter
12. Negotiation and mediation
Scott Slorach, Judith Embley, Peter Goodchild, and Catherine Shephard
This chapter provides guidance as to how to conduct a negotiation and a mediation, and explains the difference between the two. It covers how, why, and when a law student might require these skills, and how to further develop the skills for professional practice. Advice is given about how to prepare effectively for a negotiation by drafting a negotiation plan. There is consideration of the different approaches to conflict and uncertainty and how they impact negotiation style. The BATNA is defined and discussed. For mediation, a flowchart is provided to guide students through the mediation process. The growing trend towards online dispute resolution is covered.
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