Alternative dispute resolution in the UK: mediation, arbitration and other mechanisms

Alternative dispute resolution in the UK: mediation, arbitration and other mechanisms

Conflicts are not an exception in business, but part of reality. However, litigation is not always the best way to resolve them. Court proceedings can drag on for years, leading to reputational damage, high costs and a final breakdown in relations between the parties. That is why alternative dispute resolution mechanisms are actively used in the United Kingdom, in particular mediation, arbitration, expert determination and legally assisted negotiations.
Consultant Law Firm provides comprehensive support to clients who choose ADR instead of traditional litigation. We provide preparation, representation, legal formalisation of agreements and protection of your interests — with minimal loss of time, budget and reputation.

What is ADR and why is it used in the UK?

ADR (Alternative Dispute Resolution) is an out-of-court method of conflict resolution in which the parties reach an agreement without going to court or within a parallel process.
Advantages of ADR:

1. Faster than litigation (sometimes a decision can be reached in a matter of days).
2. 
   Cheaper than full court proceedings.
3. 
   Confidentiality — the details of the dispute are not made public.
4. 
   Flexibility of decisions — non-standard agreements are possible.
5. 
   Preservation of business relationships (important for partners and clients).

In the United Kingdom, alternative dispute resolution has a special legal status: courts may dismiss a claim or impose a fine on a party that has unreasonably refused to participate in ADR. Also, according to the Civil Procedure Rules, the parties must prove that they have attempted to resolve the dispute amicably before going to court.

Mediation: dialogue with the participation of a neutral party

Mediation is a process in which the parties try to reach an agreement with the participation of an independent mediator. The mediator does not make decisions but helps to find a compromise and correctly record the agreements.
Features of mediation in the United Kingdom:

• Used in commercial, labour, family and partnership disputes.
• 
  Conducted with the consent of both parties or on the recommendation of the court.
• 
  Agreements can be formalised as legally binding settlement agreements.
• 
  Online mediation is possible (especially relevant for international companies).
• 
  Professional mediators are accredited by organisations such as CEDR or CIArb.

We help you choose a mediator, prepare your legal position, participate in negotiations and record the results so that they are legally binding.

Arbitration: a private ‘court’ procedure

Arbitration is a form of dispute resolution in which the parties agree to refer the case to a third party (an arbitrator or arbitration tribunal), whose decision is binding.
Why companies choose arbitration:

• Arbitration decisions are legally binding and enforceable (including in other countries under the New York Convention).
• 
  It is often used to resolve disputes in the fields of construction, IT, international trade, and investment.
• 
  Complete confidentiality of the process (which is critical for protecting reputation).
• 
  You can independently choose an arbitrator with the appropriate specialisation.

We prepare arbitration clauses for contracts, represent clients at hearings, prepare positions and responses, and ensure the enforcement of arbitration awards.

When to choose mediation and when to choose arbitration?

Mediation is more suitable if the parties are at least partially willing to negotiate, want to maintain cooperation, or when the dispute is emotionally/personally sensitive (e.g., between partners).
Arbitration is the best option if the dispute is complex, involves a large amount or asset, and the parties cannot reach an agreement but want to avoid court.

Advantages of working with a consultant during alternative dispute resolution

Representation in negotiations, participation in sessions, legal support.

Execution of a settlement agreement or enforcement of an arbitral award.

Adaptation of contracts to include ADR clauses (arbitration clause, mediation clause).

Frequently asked questions about alternative dispute resolution