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Understanding Alternative Dispute Resolution: Conciliation, Arbitration, and Collaborative Law

Alternative Dispute Resolution (ADR) encompasses methods such as conciliation, arbitration, and collaborative law which help resolve disputes without litigation. Conciliation involves a third party facilitating discussions to help parties reach their own decisions, while arbitration entails a third party imposing a decision that is legally binding. Conciliation is less formal and often encourages cooperation, whereas arbitration is more structured and used in commercial disputes. Collaborative law focuses on resolving issues with mutual agreement. Each approach has its advantages and disadvantages in the resolution of conflicts.

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Understanding Alternative Dispute Resolution: Conciliation, Arbitration, and Collaborative Law

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  1. ADR’s Continued...

  2. CONCILIATION • Third party assists in the process of enabling parties to reach a decision between themselves. • Third party does not make a decision • Listens to the facts and makes suggestions • Assists parties the parties to come to their own decisions. • Assists by exploring solutions/suggesting options

  3. Comparison • Conciliators exercise a greater influence over he the outcome than in mediation • By suggesting options and possible solutions the conciliator is more directive then a mediator • The decision is not legally binding but is more likely to be followed because it is made in front of a third party

  4. When is conciliation used? • Conciliation is used in VCAT • Prehearing conference in the Magistrates court

  5. ARBITRATION • In Arbitration parties call a third party which the parties have agreed to follow • They listen to the facts and make decision on behalf of the parties.

  6. Comparison • It is more formal than conciliation and mediation • Not as formal as adjudication (the court hearing) • Mainly used in commercial disputes • It is legally enforceable

  7. Operates and domestic and international levels • Governed by the commercial arbitration acts of the various states and the International Arbitration Act 1974 (Cth)

  8. The Magistrates Court • Arbitration used in civil disputes less than $10000 • The Victorian Bar Dispute Resolution Scheme has trained arbitrators for use in private or commercial situations. • There is a cost for parties using arbitration

  9. Collaborative law Questions • What is collaborative law? • What is involved in this process? • When might it be used? • Who is involved in this process? • When is this process not suitable for resolving disputes • Explain 4 advantages and 4 disadvantages of ADR’s. (see page 295 to 297)

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