4 alternatives to legal action
Legal action can be costly and time consuming. That being said, whenever you encounter legal problems there are some options around. We’ve taken a look at some of the alternatives to legal action that can see you achieve
1. Mediation
This involves a trained mediator facilitating a negotiation, but not making binding decisions and is usually a good way of solving a dispute with lawyers present or not.
Advantages:
- Introduction of a third party to appraise the case and a reflective approach to disputes
- Focused on interests of parties rather than legal rights and conciliatory in nature
- It can be quick, cheap and confidential with scope for non-monetary remedies
Disadvantages:
- No appropriate when a court remedy is necessary
- Rarely produces, and mediator has no power to impose binding decision
2. Early neutral evaluation
This is a non-binding process where a neutral party gives non-binding evaluations of the merits and flaw of a dispute in general, generally involving the opinion of a QC/retired judge.
Advantages:
- Can be useful and assist parties that need to break a deadlock.
Disadvantages:
- Process is non-binding and parties can ignore an opinion they disagree with.
3. Expert determination
An independent third party with recognised expertise in the subject matter in dispute, assists the parties and helps them resolve the dispute.
Advantages:
- Quick, cheap and confidential and gives parties a greater knowledge of how the factual evidence is likely to be decided if the case goes to trial.
- Can be effective where the parties anticipate a specific type of technical dispute.
Disadvantages:
- Expert has no power to force his findings on the parties.
- The parties may provide that the determination of the expert is final and binding upon them, but recourse to the Courts is still necessary to enforce any determination.
4. Arbitration
This is when the matter is determined by a professional arbitrator given power to impose a binding decision on both parties. Arbitration can, in that sense, be seen as a direct replacement for litigation.
Advantages:
- Avoids using the courts and is confidential.
- Speedier and more informal than litigation.
- Potential for limited discovery.
Disadvantages:
- Costs with arbitrations potentially taking a similar amount of time to litigation.
- An arbitrator's award may only be appealed on the limited grounds of manifest error of law on the face of the award, where the question is one of the general public importance.
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