Using alternative dispute resolution (ADR) mechanisms to resolve commercial disputes

ADR-mechanisms-to-resolve-commercial-disputes.jpg.jpg

Alternative Dispute Resolution (ADR) is typically used when a business faces a dispute with a customer or supplier that cannot be resolved internally. In such cases, third-party support is sought to reach a resolution outside of court.

Sara Beaumont, a director at WHN’s Bury office and a specialist in commercial dispute resolution, explains what ADR is and how businesses can benefit from using ADR to settle commercial disputes.

Recent amendments to the Civil Procedure Rules (CPR), effective from October 1, 2024, marked a pivotal moment in the promotion and utilisation of alternative dispute resolution (ADR) mechanisms.

These amendments aim to integrate ADR more intensely into the civil justice system, and reflect a broader trend towards encouraging more efficient, cost-effective and amicable resolutions to commercial disputes. Subsequently this also aims to reduce the number of commercial disputes seeking resolution through the courts and relieve the burden on the justice system.

What is Alternative Dispute Resolution?

Alternative Dispute Resolution encompasses various methods of resolving disputes outside traditional court proceedings.

The main types of ADR include:

Mediation: A neutral third party (mediator facilitates discussions between the disputing parties to help them reach a mutually acceptable agreement. Mediation is non-binding unless an agreement is reached and formalised.
Arbitration: In arbitration, a neutral third party, the arbitrator, hears evidence and arguments from the parties and makes a binding decision. Arbitration is often used in commercial contracts and can be faster and more flexible than court proceedings.
Negotiation: This is a direct discussion between the parties involved in the dispute, with the aim of reaching a settlement without the involvement of third parties. Negotiation is the most informal and flexible form of ADR.
Conciliation: Similar to mediation, conciliation involves a neutral third party who helps the disputing parties to resolve their issues. However, the conciliator may take a more active role in suggesting solutions and terms of settlement.
Expert determination: This process involves appointing an independent expert with specialised knowledge in the subject matter of the dispute. The expert evaluates the evidence and provides a binding or non-binding decision, depending on the parties’ agreement.
Early Neutral Evaluation (ENE): ENE involves an independent evaluator, often a judge or experienced lawyer, who assesses the merits of the case early in the dispute. The evaluator provides a non-binding opinion, which can help the parties understand the strengths and weaknesses of their positions and facilitate settlement.
Ombudsman schemes: Ombudsman schemes are independent bodies that investigate and resolve complaints between consumers and businesses. They provide a free, impartial service and their decisions are usually binding on the business if the consumer accepts the decision.

The benefits of resolving commercial disputes using ADR

Using Alternative Dispute Resolution to resolve commercial disputes can be beneficial to business for several reasons, including saving time and money and seeking more satisfactory and flexible solutions for the parties involved. Here is a breakdown of these benefits:

Efficiency and cost-effectiveness: ADR methods, particularly mediation and arbitration, are often quicker and less costly than traditional litigation. By encouraging or mandating ADR, the courts aim to reduce the time and expense associated with resolving commercial disputes, benefiting businesses and the judicial system alike.
Preservation of business relationships: ADR processes are generally less adversarial than court proceedings, which can help preserve business relationships. This is particularly important in commercial disputes where ongoing business interactions are common.
Flexibility and control: ADR offers parties greater flexibility and control over the resolution process. Unlike court judgments, which are typically binary, ADR allows for creative solutions that can be tailored to the specific needs and interests of the parties involved.
Increased compliance: With the courts now having the power to mandate ADR, parties are more likely to comply with ADR processes. This can lead to higher settlement rates and more satisfactory outcomes for all parties involved.

By actively managing cases and mandating ADR where appropriate, the courts are fostering a more efficient, cost-effective, and amicable dispute resolution environment. As solicitors, we will always advise clients on these benefits and the opportunities presented by ADR.

Not only does ADR align with the courts’ objectives, it serves the best interests of our clients by providing a more effective and satisfactory resolutions to their disputes.

Sara specialises in resolving commercial disputes at all levels – both before and after the issue of court proceedings – and is experienced in the use of alternative dispute resolution, particularly mediation.

For further advice on dealing with a commercial dispute call Sara Beaumont on 0161 761 4611 or email her at [email protected]

Enjoyed this? Read more from Woodcocks Haworth & Nuttall Solicitors

Latest news

1

Bellway to build 183 high quality new homes Royal Bowland Park street scene NEW.jpg.jpg

Bellway to build 183 high quality new homes

29 Oct 2025

2

University of Lancashire recognised for entrepreneurship and supporting business growth - Representatives from the University's Business School, local SMEs and the IOEE

University of Lancashire recognised for entrepreneurship and supporting business growth

29 Oct 2025

3

£8bn Typhoon order is great news for Lancashire BAE Typhoon ECRS Mk2 Radar

£8bn Typhoon order is great news for Lancashire

28 Oct 2025

4

Award-winning Lancashire wedding venue and hotel is sold The Mill at Conder Green

Award-winning Lancashire wedding venue and hotel is sold

28 Oct 2025

5

PM+M announces another 19 promotions across the firm PM+M promotions

PM+M announces another 19 promotions across the firm

27 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
November / December 2025 Magazine Launch Event
Holiday Inn Hotel
Networking
28 Oct 2025 - 18 Nov 2025

November / December 2025 Magazine Launch Event

Holiday Inn, Blackpool

16:46 - 16:45

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

Chamber Breakfast Networking – November
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
06 Nov 2025 - 06 Nov 2025

Chamber Breakfast Networking – November

Porsche Centre South Lakes, Carnforth, LA6 1FW

08:30 - 10:30

Lancashire Police business update with The Police and Crime Commissioner
Lancs-cham-logo.jpg.jpg
LBV Hub Roundtables
10 Nov 2025 - 10 Nov 2025

Lancashire Police business update with The Police and Crime Commissioner

Lancaster Castle, Lancaster, LA1 1YN

14:00 - 16:00

Beyond the Brand: Building trust through values and integrity
1.png.png
LBV Hub Networking
11 Nov 2025 - 11 Nov 2025

Beyond the Brand: Building trust through values and integrity

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:00

AI, Creativity, and what it means to be human
2.jpg.jpg
LBV Hub Networking
11 Nov 2025 - 11 Nov 2025

AI, Creativity, and what it means to be human

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:00

The Business Network Central and East Lancashire
LBV Hub Networking
13 Nov 2025 - 13 Nov 2025

The Business Network Central and East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

The AI Lab: E-commerce
Ai Lab ecommerce (1).png.png
LBV Hub Seminars
14 Nov 2025 - 14 Nov 2025

The AI Lab: E-commerce

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 11:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin