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Alternative Dispute Resolution Essay

1312 words - 5 pages

Alternative Dispute Resolution

Consider carefully the facts of the case study and advise Eagle
Aviation Ltd. and Aircraft Ltd. of the alternatives to litigation in
the ordinary courts and the advantages and disadvantages of each
alternative form of ADR.

This submission will identify and define each form of Alternative
Dispute Resolution (ADR) including each of the forms advantages and
disadvantages. It will also compare and contrast each form of ADR and
consider which form or forms would be beneficial to both Eagle
Aviation Ltd and Aircraft Ltd

Alternative Dispute Resolution or ADR can be defined as “any method of
resolving a legal problem without resorting to the legal process”
(Darbyshire, 2001). ADR is now becoming more and more favorable
particularly within the court system as an alternative to traditional
forms of litigation (Practice Statement [1994] 1 ALL ER 34, Cresswell,
J) (Practice Note [1996] 3 ALL ER 383 this is as litigation is a
process that can be costly, time consuming and complicated, therefore
ADR is an alternative which can be useful to all parties involved.

The leading forms of ADR are; Arbitration, mediation, conciliation and
negotiation. ADR is not legally binding with the exception of
Arbitration, however in Mediation when a solution has been reached and
agreed by each party once it has been written and signed by the
parties involved it does then become a legally binding document. ADR
will only be successful if both parties involved are in agreement with
the outcome this of course can become increasingly difficult if the
parties refuse to speak to each other, In these cases litigation may
be the only viable solution, however ADR is ideal where it is
important that each party maintains an unblemished relationship with
the other party involved this is especially important within the
business community.

Arbitration is one of the oldest forms of Alternative Dispute
Resolution (ADR) it is governed by the 1996 Arbitration Act (AA) and
is part of the Advisory, Conciliation and Arbitration Service (ACAS).
The Act states in Section One that the object of Arbitration is “to
obtain the fair resolution of disputes by an impartial tribunal
without necessary delay or expense” (Slapper and Kelly, 2003)

Arbitration can only transpire if both parties involved agree to it,
it is the only form of ADR that is legally binding however Arbitrators
are not bound by precedent. An Arbitrator can either be a legal
practioner or an expert in the field where the dispute rest and they
are usually a panel of three known as an Arbitration Tribunal
generally comprising of a legal and industry expert within the dispute
field and an experienced Arbitrator. Section 33 of the AA states that
an Arbitration Tribunal has a duty to “act fairly and impartially
between the parties, giving each a reasonable opportunity to state
their case; and to adopt procedures suitable for the circumstances of
the case,...

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