The enforcement of ADR clauses

Abstract

The term ADR, or Alternative Dispute Resolution, refers to a variety of techniques alternative to litigation, including arbitration, apt for the resolution of disputes. The main difference between arbitration and other alternative dispute resolution processes is that whilst the former is regulated by statute, that is the 1996 Arbitration Act, none of the latter processes is so fettered. ADR clauses may be drafted either in simple form, referring a dispute to a single process for resolution, or in multi-tiered form, referring the dispute to two or more ADR processes sequentially, generally escalating from facilitative towards adjudicative processes. The advantage of multitiered clauses lies in the fact that the various facets of a complex dispute may be resolved by the most appropriate process at the relevant stage, even though such clauses may render the process more cumbersome. For the purpose of the current analysis, the enforcement of arbitration clauses, simple ADR clauses and multi-tiered clauses will be considered separately.