Alternative Dispute Resolution - At a Glance

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When people have a dispute they can’t resolve themselves, they often think of litigation as the next step. There are a number of alternative dispute resolution options available to help parties resolve their issues without the need to resort to litigation. Such options are often quicker, cheaper and less stressful.

Commercial contracts often require parties to utilise at least one alternative dispute resolution procedure before proceeding to litigation. For instance, a contract may require that the parties engage in dispute negotiations; participate in a private mediation; or appoint an expert or arbitrator to make a determination on the disputed issues.

These options should be considered at the start of the commercial relationship, before a dispute arises. That way, the parties can consider in advance the risks and benefits of each process and state in their contract how they want any future dispute to be dealt with. Agreement is rarely reached as to an alternative dispute resolution procedure after a dispute arises, making the prospect of litigation far more likely.

In the following link we have provided a table which sets out some basic information on the main dispute resolution procedures, which should be considered before deciding which path to take. 

Click here to view Table

 

The material in this article is provided only for general information. It does not constitute legal or other advice.

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Dean Grondal – Principal, GRONDAL BRUINING

Ph: +61 8 6500 4320