Introduction
The introduction of the Civil Procedure Rules permitted the Courts actively to encourage the use of Alternative Dispute Resolution (ADR). Prior to the CPR some Judges would suggest it, but there was no policy in place to facilitate it. That has changed.
The Court's very first involvement with a case is to send out an Allocation Questionnaire to the parties' solicitors, which asks a number of questions about the case. One of the first questions the parties are asked is whether they wish a one-month stay of the proceedings in order to allow settlement discussions to take place. If the parties agree to this step then the timetable for the future conduct of the action is delayed by a month while the parties go to mediation or negotiate on their own.
ADR increasing
Statistics published by the Centre for Dispute Resolution (CEDR) show a 50% increase in mediations since April 1999 when the CPR were introduced. The ADR Group has also reported an increase. It has been handling 30 to 40 mediations a month since April 1999 compared to a total of 149 throughout 1998. While the numbers of disputes going to ADR is still relatively modest, they are predicted to increase as parties and their solicitors gain experience and confidence in using the new procedures.
Benefits
Advocates of ADR point to, among other things, the cost saving benefits for clients who opt to try ADR. With up to 80% of mediations settling proceedings successfully, disputes can often be resolved before the costs have escalated. Even if a settlement is not achieved, the CPR's emphasis on case management and seeking early settlements means that a lot of the ground work is completed in a relatively short time in preparation for the mediation thus reducing trial preparation time and the need to consult with clients over an extended period of time.
A random sample of successfully mediated cases chosen by CEDR showed that the average cost saving for parties who achieve settlement by mediation to be £260,000. Statistics such as these, combined with the Court's active promotion of ADR means that parties are trying harder to resolve their disputes outside Court proceedings and are doing it earlier than was previously the case.
For further information on mediation or other forms of ADR please contact Tim Hardy, Head of Commercial Litigation and Dispute Resolution on (+44) (0)20 7367 3000 or e-mail tim.hardy@cms-cmck.com.
