Alternative Dispute Resolution (ADR) refers to methods of resolving disputes without going to court. It is often quicker, cheaper, and less stressful than litigation.
Benefits of ADR
✅ Cost-Effective – ADR is usually much cheaper than court proceedings.
✅ Faster Resolution – Cases can be settled in weeks or months, compared to years in court.
✅ Confidential – ADR processes are private, unlike court cases, which are public.
✅ Less Stressful – Less formal and adversarial than a court battle.
✅ Flexible Solutions – ADR allows for creative outcomes beyond legal rulings.
✅ Preserves Relationships – Useful for business, family, or workplace disputes where ongoing relationships matter.
Types of ADR in the UK
Mediation
What is it?
- A neutral mediator helps both sides reach a voluntary agreement.
- The mediator does not impose a decision but facilitates negotiation.
Used in:
- Family disputes (divorce, child arrangements)
- Workplace conflicts
- Commercial disputes
- Landlord-tenant disputes
Advantages:
✔️ Informal and private
✔️ Maintains relationships
✔️ Usually quicker than other methods
✔️ If an agreement is not reached the claim can continue through traditional routes in court.
📌 Disadvantages:
❌ Not legally binding -unless a written agreement is made- which it normally is at a successful mediation.
❌ Relies on both parties cooperating
Arbitration
What is it?
- A neutral arbitrator reviews evidence and makes a legally binding decision.
- Often used in commercial contracts where parties agree to arbitration instead of court.
Used in:
- Business and contract disputes
- Construction claims
- Employment disputes
Advantages:
✔️ Legally binding decision
✔️ Private and confidential
✔️ Faster and cheaper than court
Disadvantages:
❌ Limited right to appeal
❌ Can be costly if complex
Adjudication
What is it?
- A quick decision made by an adjudicator often within 28 days.
- Common in the construction industry under the Housing Grants, Construction & Regeneration Act 1996.
Used in:
- Construction contract disputes
- Payment disagreements in the building industry
Advantages:
✔️ Quick resolution (28-day process)
✔️ Interim decision – parties can still go to court later
📌 Disadvantages
❌ Decision may not be final
❌ Only applies to specific industries
Expert Determination
What is it?
- An independent expert assesses the dispute and gives a binding decision.
- Often used for technical or professional disputes.
Used in:
- Intellectual property disputes
- Financial and valuation disputes
Advantages:
✔️ Faster than litigation
✔️ Ideal for technical matters requiring expertise
Disadvantages:
❌ No appeal unless agreed in advance
Negotiation
What is it?
- Direct discussions between the parties to reach a mutually acceptable settlement.
- Can involve solicitors but does not require a third-party mediator.
Used in:
- All types of disputes, including business, family, and employment issues
Advantages:
✔️ Informal and cost-effective
✔️ No third-party fees
Disadvantages:
❌ Relies on both parties negotiating in good faith
❌ No legal enforcement unless a formal agreement is signed
Would you like advice on which ADR method suits your situation? In which case contact us at TM Law who have taken part in over 200 mediations with great success as well as adjudication and arbitration and in almost every case negotiations.
