Suing

8. Alternative Dispute Resolution

There are a number of different methods of resolving disputes without resorting to litigation. The advantage of Alternative Dispute Resolution (ADR) is that it is generally regarded as being quicker and cheaper than court proceedings. They are also more likely to preserve any future relationship between you and your customers or suppliers.

8.1 The main attraction of this approach is the flexibility it provides.

• You can agree how formal the procedure should be and who should act as the arbitrator or mediator. In this way you can control costs.
• Disputes can be resolved more quickly than in court.
• The process can be less confrontational than going to court.

8.2 One form of dispute resolution, if both parties agree, is arbitration. This involves using a professional arbitrator to resolve the dispute. You can make the arbitrator's decision legally binding.

• In commercial disputes, arbitration is rarely used for claims below £20,000, due to the costs involved. The main exception is 'paper arbitrations' (where the arbitrator's decision is based on written evidence that both parties have submitted), which can be used for claims as small as £2,000. Contact the Chartered Institute of Arbitrators (020 7421 7444).

8.3 An alternative to arbitration is mediation, where a professional mediator works with both parties to help them reach an agreement. In many cases, matters are resolved before they reach trial, avoiding the need for court proceedings.