Are there any alternatives to taking someone to court?

 

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23. Are there any alternatives to taking someone to court?

Yes. The main alternatives are negotiation, mediation and arbitration (see Alternative dispute resolution, FastFAQ LA 1e). The courts say that litigation should be a last resort, and actively encourage the parties to disputes to use alternative dispute resolution (ADR). From the point of view of the parties, too, litigation is costly, and may not provide the best commercial solution.

With mediation, a neutral third party helps the parties to the dispute to reach their own solution. The aim is to take away the adversarial atmosphere, and allow them to focus on the issues. The procedure is voluntary, consensual, and can be significantly quicker and cheaper than litigation (depending on the situation). Either party can withdraw at any time, and neither has to accept the proposed solution. For commercial clients, mediation has another significant advantage in that it is a private process, unlike litigation, which is public. However, for mediation to succeed both parties must enter into the process voluntarily, and in a spirit of co-operation. If a settlement is reached, it will be recorded in a written agreement that can be enforced as a contract.

Arbitration, in contrast, is an adjudicative process (like litigation). The parties voluntarily refer a dispute to an independent third party, who is appointed by them to make a decision based on the evidence and arguments presented. The parties agree in advance to be bound by the arbitration award, which can then be enforced by application to the High Court as if it were a court judgement. Like mediation (and unlike litigation), arbitration is a private process. Arbitrators can also be chosen for their particular expertise, which can be useful in technical cases that might fall outside the expertise of High Court judges.

Many commercial agreements contain 'dispute resolution' clauses specifying that a particular method of ADR should be used, before resort to the courts. The terms of these clauses should be carefully checked for the correct contractual procedure for dispute resolution.