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Alternative Dispute Resolution

What is Alternative Dispute Resolution?

Alternative Dispute Resolution or ADR, is an alternative to taking a dispute to court or to arbitration.

It is widely recognised that the Court system is overloaded, and as a result, it can take years for a legal case to go to trial. One of the main benefits of ADR is that it provides faster resolution and, secondly, much lower costs than going to trial.

The fact of the matter is that the majority of legal disputes are resolved before going to trial. The process by which these conclusions arise is called ADR, or alternative dispute resolution. ADR is commonly practiced in the UK and increasingly, can be ordered by the court – with good reason. Read on to learn how you and your clients might reap the benefits of ADR.

Types of ADR

The two most common types of ADR are mediation and expert determination. In both cases, a neutral third party is selected to help resolve the dispute. In general, mediation is a more informal process where the two parties work together to settle on mutually agreeable terms. The role of the mediator is not to judge the case, but to assist the parties in reaching a voluntary settlement.

Expert determination also involves a neutral third party, but in this case, the expert determiner, will act as the alone to make a legally binding decision regarding the dispute. During the expert determination, the parties will make statements and submit evidence for review, but neither party is involved in the determination process.

ADR can be used to resolve many types of legal disputes, including:

  • professional negligence

  • personal injury

  • breach of contract

  • share valuations

  • tax disputes

  • insolvency

  • wills and probate disputes

  • trust disputes

  • and more...

How we can help

If you or your clients are struggling to conclude a financial dispute, it may be advantageous to appoint an independent third party to help you resolve the dispute.

As Forensic Accountants, we are qualified to undertake both Mediation and Expert Determination, having trained with The Academy of Experts and have experience in providing commercial mediation and expert determinations that are final and legally binding on the parties.

What is alternative dispute resolution?

Alternative dispute resolution (ADR) is a term used to describe a variety of methods for resolving disputes outside of the traditional court system. ADR can be a faster, less expensive, and less formal way to resolve disputes than going to court. 

There are several different types of ADR, including: 

  • Mediation: Mediation is a process in which a neutral third party, called a mediator, facilitates communication between the parties in a dispute and helps them to reach a mutually acceptable resolution. The mediator does not have the authority to make a decision, but rather helps the parties to communicate and find a solution that they both agree to. 

  • Arbitration: Arbitration is a process in which a neutral third party, called an arbitrator, hears evidence and arguments from both sides in a dispute and makes a binding decision. The arbitration process is usually less formal than a court trial and may be quicker and less expensive. 

  • Negotiation: Negotiation is a process in which the parties to a dispute communicate directly with one another in an effort to reach a mutually acceptable resolution. Negotiation can be informal, such as a conversation between two people, or it can be more structured, such as a negotiation facilitated by a mediator or other third party. 

  • Conciliation: Conciliation is similar to mediation, but the conciliator has more authority to make recommendations for a resolution. The parties are not required to accept the conciliator's recommendations, but they may find them helpful in reaching a mutually acceptable resolution. 

Overall, ADR can be a useful way to resolve disputes in a more efficient and cost-effective manner than going to court. It can also be less stressful and more private than traditional legal proceedings. 

When should I consider alternative dispute resolution?

You may want to consider alternative dispute resolution (ADR) if: 

  • You want to avoid the time and expense of going to court: ADR can often be faster and less expensive than traditional legal proceedings. 

  • You want to maintain a relationship with the other party: ADR can be a less confrontational way to resolve disputes, which can help to preserve relationships. 

  • You want a more private resolution: ADR can often be more private than traditional legal proceedings, which may be important if you want to keep the dispute out of the public eye. 

  • You want more control over the resolution: In traditional legal proceedings, the outcome is decided by a judge or jury. In ADR, the parties have more control over the resolution and can work together to find a solution that meets their needs. 

  • The other party is willing to participate: ADR relies on the cooperation of both parties, so it may not be an option if the other party is unwilling to participate. 

Overall, ADR may be a good option for you if you want to resolve a dispute in a more efficient, cost-effective, and private manner and if the other party is willing to participate. It is always a good idea to consider all of your options before making a decision about how to proceed. 

How can alternative dispute resolution help me?

Alternative dispute resolution (ADR) can help you in several ways: 

  • Faster resolution: ADR can often be faster than traditional legal proceedings, which can help you to resolve your dispute more quickly. 

  • Lower costs: ADR can often be less expensive than traditional legal proceedings, which can save you money. 

  • Greater control over the resolution: In ADR, the parties have more control over the resolution of the dispute and can work together to find a solution that meets their needs. In traditional legal proceedings, the outcome is decided by a judge or jury. 

  • Greater privacy: ADR can often be more private than traditional legal proceedings, which may be important if you want to keep the dispute out of the public eye. 

  • Preservation of relationships: ADR can be a less confrontational way to resolve disputes, which can help to preserve relationships with the other party. 

Overall, ADR can provide a number of benefits and may be a good option for you if you want to resolve a dispute in a more efficient, cost-effective, and private manner. It is always a good idea to consider all of your options before making a decision about how to proceed. 

What are some examples of alternative dispute resolution?

Alternative dispute resolution (ADR) refers to methods of resolving disputes outside of the traditional court system. Some common examples of ADR include: 

  • Mediation: This is a process in which a neutral third party helps the parties in a dispute to reach an agreement. The mediator does not have the power to make decisions, but rather facilitates communication and helps the parties find a mutually satisfactory solution. 

  • Arbitration: This is a process in which a neutral third party, known as an arbitrator, hears the arguments of both sides and makes a binding decision on the dispute. Arbitration can be either voluntary, where both parties agree to submit to the arbitrator's decision, or mandatory, where arbitration is required by law or contract. 

  • Conciliation: This is a process similar to mediation, but the conciliator has more authority to make recommendations for a resolution. The parties are not obligated to accept the conciliator's recommendations, but they may find them helpful in reaching an agreement. 

  • Negotiation: This is a process in which the parties in a dispute communicate directly with each other in an attempt to resolve the issue. Negotiation can be informal, such as a conversation between two people, or it can be more structured, such as a series of meetings with a mediator present. 

  • Collaborative law: This is a process in which the parties in a dispute agree to work together to reach a resolution without going to court. Collaborative law involves a series of meetings with the parties, their lawyers, and other professionals, such as financial advisors or child psychologists. 

Contact us

Find out more about how Matrix Forensic can help with alternative dispute resolution by sending us an enquiry.

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