In the past, it was not uncommon for a business to move straight to issuing legal proceedings whenever a dispute arose. This remains a viable and often the best solution in many cases.
However, there are now many alternatives to formal court proceedings which should be considered by any business involved in a commercial dispute because it is not a on size fits all issue.
Indeed in many instances issued legal proceedings and alternative dispute resolution mechanisms run side by side.
What are the alternatives to formal court proceedings?
Businesses are increasingly using alternative methods to resolve commercial disputes.
These methods are known as Alternative Dispute Resolution (ADR) and are encouraged by the court.
A party who unreasonably refuses to participate in ADR may be sanctioned by the court in future legal proceedings.
Negotiation
The most straightforward and flexible way to resolve a dispute is to approach the other side to explore the chances of a settlement.
This can be done at any time during the litigation process, even during a trial. It can be done before litigation and during it.
However, you should always take legal advice first to ensure the settlement discussions are conducted on a “without prejudice basis”. This means that anything said about the dispute during the settlement negotiations or in any written settlement offer cannot be used later at the trial.
This protection only applies to statements made purely in an attempt to settle the case.
Mediation
Mediation is by far the most frequently used method of ADR.
While mediation can take many forms, it most typically involves the parties participating in a meeting with a third-party neutral mediator, whose role it is to seek a settlement of the issues between the parties.
Mediators are trained in the practice of mediating disputes and often have high settlement success rates.
Whereas court proceedings can often only provide limited remedies, such as the payment of compensation, mediators can achieve more flexible and creative solutions like a discount on a future order, or the publishing of an apology.
Adjudication
Adjudication is typically used in the construction industry and is set out in most construction contracts.
It is similar to a court process whereby an expert in the field typically makes a decision based on evidence put in front of them.
Adjudication can be expensive, but it is usually conducted in a very short timescale so a decision can be reached quickly.
If your company is likely to be involved in a dispute, taking early legal advice could help save you time and money in the long run.
Dispute resolution with Palmers Solicitors
At Palmers, our specialist Dispute Resolution solicitors offer sensible, practical solutions and sound advice based on a wealth of experience.
We are leading advocates of mediation and other ADR procedures, and we will do our utmost to help you reach a settlement outside of court.
With our pragmatic, robust approach, we will work with you to achieve the best possible outcome in line with your commercial objectives.
For clear, cost-effective advice tailored to your unique situation, contact our Dispute Resolution team today.