28/10/2010

In recent months the NSW Attorney General has released an ADR Blueprint for public consultation aimed at increasing and better integrating Alternative Dispute Resolution (ADR) methods across the NSW legal system.

The ADR Blueprint includes proposals on:

• Changing court procedures to focus on resolving disputes not just preparation for final hearing.
• Introduction of pre-litigation obligations.
• Requiring government agencies to adhere to Model Litigant Policies.
• Improving consumer access to information about ADR.
• Increasing the emphasis on ADR in legal training.
• Establish an International Dispute Resolution Centre in Sydney.

In our experience approximately 90% of civil litigation cases settle before they get to a final hearing in court.  It therefore makes sense for procedures and requirements to be made on parties to attempt to resolve disputes prior to litigation.  This saves potential costs and court waiting lists for those matters that cannot be resolved.

Of particular significance is the recommendation that parties to a dispute “take reasonable steps to resolve a dispute without litigation”.  Where a party fails to “take reasonable steps” a court may take that party’s actions into consideration when making orders about case management, hearing and costs.

It is not suggested that ADR will be compulsory but parties should attemp to resolve a dispute or narrow the issues before engaging in expensive and stressful litigation.  Other methods include the parties engaging in correspondence on the issues and how it could be resolved, exchange information and documents and agreeing to participate in discussions.

At Townsends we take a commercial approach to our client matters and will consider and advise on possible ADR techniques that could be used in each dispute in attempts to resolve matters without the need for complex litigation.

If you have any questions in regard to this article, please contact TOWNSENDS BUSINESS & CORPORATE LAWYERS on (02) 8296 6222.