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Alternative Dispute Resolution is a wide-ranging term for many forms of proper difference management in commercial situations. Most standard forms of contract include an option for ADR, and when disputes arise it
is a sensible and efficient first port of call to resolve disputes.
Mediation and Conciliation are the most consensual and flexible forms of ADR. When disputes arise, there are always differences of opinion and pressures in contractual relationships. It is important to overcome these disputes in an efficient and relatively uncontentious way. Mediation and Conciliation provide an effective means of resolving
disputes in many circumstances. The parties in dispute must voluntarily engage a third party who will hear both sides of the argument and suggest solutions.
Mediation and Conciliation are sometimes used interchangeably, and in our definition, there is a distinction between them. Mediation is a purely consensual process, with a mediator merely encouraging the parties to try and reach a settlement agreement between them. Conciliation is a slightly more robust process where, if the parties fail to reach an agreement, the conciliator is empowered by the parties to give a non-binding recommendation. This allows the parties to examine the realities of their own positions, and can assist in more intractable disputes where Mediation alone may fail.
Mediation and Conciliation compliment other dispute resolution mechanisms, especially Arbitration and Litigation. Mediation can be ordered under some arbitration agreements, and is now used extensively by the Courts in London.
The key to Conciliation and Mediation is very often appointing the appropriate, properly trained, experienced and qualified conciliator or mediator. |