Tag: Arbitration

Alternative Dispute Resolution

Alternative Dispute Resolution

There are five methods that can be used, associated with dispute resolution:

  1. NEGOTIATION

This is the informal bargaining that takes place directly between the parties to the dispute for the sole purpose of coming up with a solution for the situation at hand.  In some instances, parties may opt to have legal representation in a bid to find an amicable solution. In the event that parties do not reach an understanding the parties may then go on to the next stage which is MEDIATION.

2. MEDIATION

Is a process in which a neutral third party (one that has no direct interest in the outcome of the matter) known as a mediator helps the parties to negotiate and resolve their disputes. The mediation process is a very delicate one that requires the objective third party to continuously go back and forth between the parties relaying information in a bid to resolve the dispute. The success of the process is premised on the attitude of the parties as well as the element of confidentiality especially by the mediator. The mediator has two main roles

  • To identify the root cause of the dispute,
  • Prompt parties to reach a solution (mediator does not impose or suggest solutions but rather encourages the parties to reach a solution)

3. FACILITATION

This process is very similar to mediation however this process revolves around resolving the problems that are faced by groups of people

4. CONCILIATION

This is a process where parties to a dispute try to reach an agreement through the aid of a conciliator (impartial third party). The conciliator will advise both parties of their rights but leave the ultimate resolution of the matter in the hands of the parties.

5. ARBITRATION

This is a formal process of resolving a dispute. An arbitrator is appointed and parties have to present their case before the Arbitrator who will then weigh the facts and make a ruling which shall be binding on the parties. For some institutions arbitration is their port of call as compared to the courts and as such in the event of breach of either party to an agreement it may be disputed that the dispute shall be resolved by way of arbitration.