Alternative Dispute Resolution (ADR) – Inheritance Disputes

If a party unreasonably refuses to engage in Alternative Dispute Resolution (“ADR”) the Court may impose costs sanctions, such as refusing to allow a Claimant to recover some/all of their costs even if they win the case.

Benefits of ADR

• Saves time.  Court proceedings may take months or years to conclude.  ADR can usually be arranged and undertaken in a much shorter time frame.
• Saves costs.  ADR is likely to be cheaper than litigation because of the shorter timescale.  It can avoid time consuming (and therefore costly) tasks like disclosing documents and preparing witness statements.
• Flexibility.  You can agree terms of settlement via ADR which a Court could not order.
• Choice.  Some ADR procedures allow the parties to select a Mediator/Arbitrator with specialist knowledge of the subject matter of the dispute.
• Confidentiality.  ADR procedures can be confidential.
• Without Prejudice.  Most ADR is conducted on a “without prejudice” basis meaning that information exchanged or disclosed during the process cannot be used in Court proceedings.
• Maintains positive business relationships.  ADR can enable the parties to reach settlement by consent, increasing the likelihood of positive future dealings.
• Likelihood of settlement.  A very high percentage of disputes settle during or shortly after an ADR process is completed.
• Benefits without settlement.  Even if ADR does not result in settlement, it might produce other benefits for the parties, such as narrowing the issues in dispute, testing the strengths and weaknesses of each party’s case and allowing the parties to air their different perspectives.

Mediation

A very common form of ADR deployed in Inheritance Dispute matters is Mediation.

Mediation involves appointing a Mediator (independent third party) to help the parties explore the options for resolution and attempt to reach agreement.  Mediation is flexible.  Sometimes it involves round table discussions.  Other times the Mediator will shuttle between the parties.  Inheritance disputes tend to be the latter as emptions can be high and parties often prefer not to be “face to face”. 

Benefits

• The Mediator does not make a decision.  The parties have complete control over whether or not to settle.
• The parties can choose the Mediator, including selecting a Mediator with specialist knowledge or skills.
• Any settlement is by agreement and may reduce the risk of damage to ongoing family relationships/business relationships.
• Expert Mediators can enable parties to see a new perspective on their case, helping them to avoid or break deadlock.
• Mediation can be arranged and undertaken quickly and at a lower cost than litigation or more formal ADR.