|
Advantages |
Disadvantages |
|
Cheap, some schemes are completely free. |
ADR is not always cheap, and can be as expensive as court action. |
|
Quick, many cases can be resolved in a matter of weeks, or even days. |
Not all forms of ADR are quick, in fact some forms of ADR require a client
to pass through many stages before adjudication. |
|
Informality is preferred by many clients. |
There can be too much informality, not popular with sophisticated clients. |
|
Efficient system for recovery of debts, by individuals. |
An unintended and some believe an undesirable result is the constant use
by business of small claims procedure as an efficient debt-collecting agency. |
|
ADR is "Alternative" dispute resolution, not intended to be compulsory,
but should be "appropriate". |
ADR is seen as compulsory because of
Dunnett. |
|
Creates an imbalance by allowing an unprepared side to be assisted a
mediator. |
Disadvantages the less powerful side in a dispute, by assisting
negotiation thereby produces a result that reflects the imbalance of
bargaining power. |
|
Popular with claimants who do not need to use a lawyer, and in some cases
are discouraged by the process from using a lawyer. |
Not popular with lawyers because it is not in their financial interests.
This has the effect of closing access to the legal system which should be
open "to all". |
|
Simple process, for example with small claims |
Confusing array of ADR which does not necessarily, in the end, work out
quicker or cheaper than court proceedings. |
|
|
Some trade arbitration schemes, such as Ombudsmen often award less than
would a court. |
|
More suitable in family matters, or where the parties have an ongoing
relationship |
Unsuitable for some types of claim, for example where there has been
intentional wrongdoing, or involves public law, or crime. |
|
Middle class professional complainants make a high proportion of the users
ADR, particularly Ombudsmen and Trade Association schemes. |
Why should a party who is "right in law" or has a "very strong" case
consider an ADR compromise? |
|
High degree of success. And use is growing rapidly. |
Claimants do
not normally issue proceedings wanting to recover a proportion of their
claim; they want it all because that is what they consider they are
entitled to. |
