It can be difficult to arrange for ADR where one or more of the parties refuses to accept that there is a problem, or is reluctant to engage in negotiations. There may also be situations in which the parties are prepared to negotiate, but there is little or no prospect of a successful outcome - for instance, where one of the parties is pursuing a case against the other for the sake of making trouble, or where one is claiming an unreasonably large sum, and is unlikely to be satisfied with much less. Even though the courts are putting increasing pressure on disputants (through the award of costs) to try negotiations before going to law, they may accept that it is reasonable to refuse mediation in such circumstances.
Alternative dispute resolution is not an effective way of dealing with a situation where one party wants the other to stop now - for example, where one party wants to stop another from selling goods with a design and function similar to its own, or where one party wants to stop harassment by the other. And because ADR proceedings are entirely confidential, they will not be suitable where one party wants to give out a message, not just to the other party, but to all other comers: for example, where the holder of intellectual property rights wants to make it plain that they will be defended, and that anyone who infringes them will be sued.
Recourse to ADR does not stop time running where there is a limited period within which action has to be taken. So if you were about to run out of time for issuing a claim, ADR would not be suitable.
