Alternative dispute resolution (ADR) or court?

There is no simple answer and a lot will depend on your priorities, circumstances and what you want to achieve at the end of the process.

What is ADR?

You could google it and get an answer, but it may also confuse you due to the vast range of terms used under the same banner. Imagine these two situations: The first, a couple who are separating and cannot agree on custody arrangements for their children; the other, an employee accusing their employer of wrongful termination. The default route in both cases would be to go through the litigation process. However, if both parties wanted to resolve the dispute without going to court, an alternative dispute resolution (ADR) method can be used.

There are two main types of ADR methods:

  • The first is mediation. This is where an independent third party, the mediator, helps both sides come to an agreement which they are both happy with. It is confidential and you stay in control of the final decisions. The agreement is non-binding, however it can be made legally binding if you choose to and depending on certain factors.  
  • The second is arbitration. This is when a third party, the arbitrator, considers all the evidence and facts and makes a decision which is legally binding. It is less formal than going to court and it is done in a private setting. You choose the arbitrator and you decide the issues you want to focus on.  

ADR has been around for years, but its value has been realised more in recent years. For example, in family cases, where mediation should be considered before making a formal application.

How do you choose which way to go?

There are a number of questions you need to ask yourself. The main one being, ‘what do you hope to achieve at the end of the process?’ Answering this question will help you decide which process is best for your individual case.

  • What are your priorities? If the primary goal is to win a large financial settlement and your solicitor advises that you have a good chance of winning, mediation probably isn’t the right option. On the other hand, if your main focus is to maintain a good environment for the children and have a good future relationship with your ex-partner, mediation may be the right choice.
  • How much control do you want over the final outcome? Do you want to be involved in the decisions or would you rather leave it to an arbitrator or judge make the final decisions?
  • How much is cost and timing a factor? For most people, less cost and a quicker timeframe will be a preference.
  • Are you able to communicate with the other side? How important is it for you to be heard? If you can sit in a room with the other side and listen to each other’s views, mediation is probably a good start.

Whichever way you choose, know the options available to you and make sure it’s the right decision for you.