Commercial Litigation & Dispute Resolution Lawyers, Liverpool
Court proceedings are not the only way available to resolve a commercial dispute. There is a range of Alternative Dispute Resolution (ADR) methods that are often quicker, more flexible and less costly and disruptive than legal action. Although not compulsory, a party may be penalised for unreasonably refusing to enter into ADR. In litigation, the defaulting party can be ordered to pay the other party’s costs.
For more information on how you can use mediation or other forms of ADR to resolve a dispute you are involved in, contact our specialist team today.
Types of ADR
The most common methods of ADR are:
An independent third party is appointed offering advice and ensuring discussions run as smoothly as possible.
An independent adjudicator is appointed who will make a decision on the parties’ respective claims.
This method is a legal process whereby an impartial tribunal is appointed to determine an outcome.
Adjudication and arbitration are closer to the court process than mediation, as they result in a solution made by the appointed third party.
The advantages of ADR can be a lower cost than court proceedings with an earlier settlement being reached as the parties control the process. It is more private and confidential and, where important, can help preserve business relationships.
The mediation process
Mediation is the most common form of ADR. A third party is appointed to assist the parties involved to negotiate a settlement. It is essentially a facilitated discussion. The process can help the parties to understand the issues and strengths of the relative cases and manage expectations.
Mediation is undertaken on a “without prejudice” and confidential basis to encourage open discussion. It will only be binding if both parties agree.
Failure to explore mediation may result in a costly penalty in litigation.
Mediation and ADR services
At Three Graces Legal, our Commercial Litigation and Dispute Resolution Solicitors can advise whether mediation and other ADR methods are right for your circumstances. We can, for example, arrange a commercial mediator who will focus on the issues, manage expectations and come to an out of court settlement, which can be drawn up into a legally binding agreement.
If a resolution cannot be reached by these methods, we will evaluate whether it is worth pursuing through the court system and whether any resultant judgment could be enforced in a cost-effective manner to secure payment.
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