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Wrexham

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10 Grosvenor Road, Wrexham, LL11 1SD



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Chester

Call 01244 312166

2 Vicars Lane, Chester CH1 1QX



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Llanrwst

Call 01492 641222

Bank Buildings, Llanrwst, Conwy, LL26 0LS



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Alternative Dispute Resolution - Reducing Litigation Costs

Litigation costs have continued to rise over the years, and continue to form a major obstacle to the settlement of cases. There have been attempts to reform the civil procedure rule to make litigation and the whole process more efficient to try and reduce the cost of litigation.

Alternative Dispute Resolution (ADR) is a method encouraged by the court to compel the parties to enter into discussion with a view to settling the dispute without the matter having to go to court and acquiring the costs in doing so. There are various different ADR’s available to consider. If the Courts believe that the ADR is appropriate then it will encourage the parties to use the process.

ADR might not be appropriate in every case, for example when an injunction is required or when there’s a lack of co-operation from one party or from previous correspondence the indication is that ADR would likely fail.

However, the main advantages of ADR are:
  • lowers the costs of the dispute if the process is entered into sufficiently early;
  • the dispute can be solved relatively quick compared to the Court procedure;
  • process is slightly more flexible compared with the Court – parties can agree how they wish to proceed due to the various form of ADR available;
  • avoid the stress a potential Court case brings and the uncertainty;
  • a wider range of outcomes can be considered, which can result in maintaining a potentially lucrative business relationship;
  • the process is confidential, nothing said can be referred to in any later court proceedings unless both parties agree to waive confidentiality. Whereas Court proceedings are usually conducted in an open Court where the public and media can attend.
The use of ADR is on the increase and is now relevant for costs disputes and any other type of dispute. The costs of litigating are increasing, and both parties should consider ADR as a means of facilitating and settling costs. If a party in litigation fails to respond to a reasonable proposal to attempt settlement by ADR then it is likely that under the discretion of the Court that this will have a significant impact on any subsequent order for costs. It is always worthwhile considering ADR.

Should you wish to discuss any matters relating to this article please contact Catrin Williams Trainee Solicitor on 01492 641222 or by email [email protected]

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The professional rules relating to solicitors' firms, including the Code of Conduct can be accessed on the website of the Solicitors Regulation Authority at www.sra.org.uk

Allington Hughes Law is a trading name of Allington Hughes Limited. Registered office is 10 Grosvenor Road, Wrexham LL11 1SD

Registered in England and Wales. Company registration number 07831162.

Authorised and regulated by the Solicitors Regulation Authority number 597867

V.A.T. registration number 166 8213 93