ADR overcomes the problems associated with going to court. A court action can be expensive, time consuming and carry substantial risks. It can seriously disrupt and damage your business, whatever the outcome, and the outcome itself can be uncertain, however strong your case.
For small businesses, going to court is simply out of the question due to its cost.
ADR overcomes these difficulties. It reduces the time and cost spent by over 90%. It is more reliable, gives you greater control, and reduces the disruption and risk. It can enable the real issues to be addressed, provide constructive solutions, and restore relationships.
At present, if the other party will not agree to ADR, your business can be made to go to court. We believe you should have the right to use ADR, if this is what makes sense for your business.
The main types of ADR are a) mediation (where a mediator takes a flexible and constructive approach to help the parties negotiate and agree a solution to meet their needs and deal with the real issues); and b) arbitration (where an arbitrator hears the case and decides the legal issues).
Modern arbitration, the model trialled by CfJ, combines arbitration and mediation and works on a non-adversarial basis. It allows the arbitrator to investigate the issues, dealing direct with the parties, removing the cost, delay and risk of court process. It also offers the parties the positive outcomes available through mediation.
ADR is shown to reduce the legal costs and staff and management time spent in handling legal disputes and claims by 90%. Use of ADR can also enable you to achieve far better settlement terms.