Methods of ADR are usually a lot less expensive than going to court. For ADR it is
unlikely that the parties will use a lawyer, which keeps the costs down even
more. The most expensive method of ADR is arbitration, where lawyers are
sometimes used. Even so, this is still cheaper than going to court. All methods of
ADR are much faster than taking a case to court, which will save in lawyer fees
should you need to use one. Another advantage of most forms of ADR is that the
parties are in control of the proceedings and outcome. In negotiation, mediation
and conciliation sessions the parties can choose to stop at any time. An
agreement will only be reached if both parties accept it. The fact that the parties
come to an agreement has another advantage; it means they will be able to
continue doing business with each other. Court proceedings are more adversarial
and will end with one party winning and the other losing. This is more than likely
to make the parties very bitter towards each other and hinder any chances of
doing further business.
Advantages & Disadvantages of using the Courts
Advantages of using the courts are:
The process is fair – Everyone is treated alike and the judge is impartial
The trial is conducted by a legal expert – The decision is made by a judge who is
an expert in law and is an experience and qualified lawyer
There is an appeal process – There are set appeal routes for decisions made in
the courts, so if the claimant is not happy with the decision they can appeal
against it in a higher court. This is also true of tribunals however and there may
be an appeal on a point of law from a decision in arbitration, but for other
methods of ADR there are no appeals.
It may be possible to get legal aid – Legal aid for civil cases has been
significantly reduced but there are still some types of cases where it is available.
Legal aid is not usually available in tribunal or other methods of ADR.
Disadvantages of using the courts are:
Expensive – The costs of taking a case to court are more often than not more
than the amount claimed. In high court the costs can be hundreds of thousands
of pounds. For the smaller claims the costs are often more than the amount
claimed.
Slow – There are many preliminary stages to go through. Even after the case is
set down for the hearing at court there is still a long wait – usually about a year
for larger claims before the case is heard in court. The total of all this can mean
that some cases are not settled for years. Small claims are dealt with quicker
with fewer formalities to be completed before the case is heard. The wait for a
hearing on average is about 30 weeks.
Complicated – There may be compulsory steps to be taken before a case is
started in court. For some types of case, the parties must use the pre-action
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