16 Jun 2020 / Back to latest updates

Alternative Dispute Resolutions (ADR) good to consider to resolve any disputes

Alternative Dispute Resolution (ADR) methods – what are they and how do they work?

There are a number of options which range from an informal to formal procedures; please see the following options: –  

  • Mediation – a third party (the mediator) meets with both sides to reach settlement. Often court appointed.
  • Arbitration – an independent third party is instructed to act as judge to consider the issues and reach a decision. This is a private process.
  • Negotiation – this is often the first step to attempt to reach settlement with the other side by offering a discount or payment plan to the other side. It can be done by either discussing the matter in a telephone conversation, by letters or in a meeting to discuss the issues.
  • Adjudication – often used in construction disputes to provide a decision in a matter.
  • Early Neutral Evaluation – an independent third party can consider the facts and make a decision which can be binding on the parties if they agree beforehand. 
  • Expert Determination – often a valuation by an expert.
  • Important to consider ADR options when considering a County Court claim as the courts have reduced costs if a party has not taken part in ADR.  

Why is now a good time to consider ADR?

  • As many businesses are struggling with cash flow now is a good time to negotiate a good deal on a debt that has been outstanding for some time or consider a longer payment plan to ensure the continuity of the business relationship or to receive some payment and draw the matter to a close.
  • The courts are open but running slower at scheduling final hearings so it is often a good idea to consider ADR before a claim is issued and before the court fees have been paid.
  • Save you on legal fees compared to a full hearing.
  • Meetings and Mediations can be set up and arranged to take place via a conference call or video conferencing platforms such as Zoom or Skype for business. They often reach good results and are less time and cost consuming than you may think. 

Should you need any advice on any dispute or recovery of a debt please contact our debt recovery solicitors for further information where you can discuss the matter with our experienced legal team.