Litigation & Dispute Resolution

Mediation is a voluntary process which involves an individual (usually a lawyer) being a party to negotiations between the disputing parties. The mediator does not have the authority to make a judgment on either party, they are only there to to assist the parties in resolving the dispute. The mediated dispute is settled when the parties are satisfied and in agreement. Mediation is distinguished from a simple negotiation by the presence of a neutral party who assists in coming to an agreement.

The conciliation process also involves a third party, but they may not be so neutral. The conciliator will actively introduce options for settlement and will require the agreement be in keeping with regulatory requirements.

In arbitration, the parties agree to abide by the third party's judgement prior to commencing arbitration.

What are the drawbacks of ADR?

While ADR is significantly cheaper in most cases, the parties lose the protection of the courts. The courts are far more costly and complicated to navigate, but they are that way because they offer extra checks and balances in resolving the dispute. The appeals process is particularly valuable when there is a dispute in the application of the law.

What are the drawbacks of litigation?

Businesses require lawyers to represent them and help them build a case, which typically means significant legal fees. When settling the dispute will cost more than the amount to be settled for, businesses are unlikely to choose a litigious option. ADR offers a middle ground that can be useful in these situations.