ADR I - Negotiation, Mediation, Conciliation

- PART I: ADR Foundation -

What is ADR

Alternative Dispute Resolution means any process of dispute resolution other than traditional courtroom litigation. It includes processes that enable parties to settle their differences primarily by agreement rather than by binding decision.

2 Essential Ingredients of ADR

1. Voluntary & Private: Parties cannot be forced to use ADR. They control the mechanics and rules and can withdraw any time, unless they make a contractually binding settlement;
2. Third-party Neutral: Often a mediator who facilitates settlement by shuttle-cock diplomacy - but has NO power to order or impose a solution.

Is ADR Regulated?

Year	Regulatory Position
1988	Arbitration and Conciliation Act 1988 regulated arbitration and conciliation
26 May 2023	Arbitration and Mediation Act 2023 signed into law - repealed the 1988 Act
-	Multi-Door Court Houses have their respective Rules and procedures

Apart from these, ADR processes are generally private and voluntary - flexible, confidential, and conducted on an ad hoc basis.

Pros & Cons of ADR

Advantages	Disadvantages
Quicker, cheaper, more private; flexible terms Third-party neutral perceived as more objective; identifies solutions parties cannot Better chances of preserving relationships Parties control process and outcome	Evidence NOT investigated as thoroughly as in litigation Voluntary - NOT appropriate when one party needs immediate judicial relief (e.g. interlocutory injunction) Unlikely to resolve non-genuine dispute (e.g. defendant stalling) NOT appropriate for test cases requiring binding judicial precedent

When to Resort to ADR - 6 Factors

Resort can be made at any time before, during, or after judgment. But early resort is important. Factors: