Dispute Resolution Methods
Mediation
Conciliation
Arbitration
Judicial Determination
Conciliation is a dispute resolution method in which the neutral third party is able to offer suggestions and possible options of dispute resolution to the parties. The decision reached in this method is not automatically binding, however, it can be made binding through signing a deed of settlement
This is a less formal method of dispute resolution compared to judicial determination, but involves a neutral third party that devises an automatically legally binding decision for both parties in the dispute. In arbitration, the amount of damages claimed by the parties must be any amount under $10,000
Similarities:
This method of dispute resolution is highly formal and costly. The neutral third party, which is a judicial officer, formulates a decision for the parties based on the evidence that they have presented. The parties are strongly recommended to have legal representation and the decision that the neutral third party devises is automatically legally binding and is called a court order
- In both methods the third party cannot make decisions for the parties
- A deed of settlement must be signed to make the decision binding
- Both methods are private and confidential
- The methods are cheap and less formal
- They can be used in a variety of courts
- They are unsuitable for criminal disputes
- They are suitable for disputes where the parties have a continuing dispute #
Differences:
- In conciliation, the third party is able to offer suggestions or possible options for dispute resolution #
Mediation is a dispute resolution method in which the parties are presided over by a neutral third party called a mediator. This party does not provide any suggestions to resolve the dispute or formulate a decision for the parties, but facilitates discussion. The decision reached by the parties is not automatically binding, unless a deed of settlement is signed
- All methods are cheaper and less formal than judicial determination
- All parties are presided over by a neutral third party
- All methods are predominantly used for civil disputes
- Arbitration mainly refers to contractual disputes
- The decision reached in arbitration is automatically legally binding
- Arbitration can only hear disputes of up to $10,000
- The arbitrator is a magistrate whilst the mediator and conciliator does not have to be a legal professional
- The parties are required to attend the hearing for arbitration whilst they are not required to for mediation and conciliation
- Arbitration is suitable for parties that do not have a continuing relationship whilst mediation and conciliation are not
- The legal fees are considerably higher
- Parties are strongly recommended legal representation
- There are strict rules of evidence and procedure
- The proceedings are not as formal or confidential as other methods
- The binding decision in judicial determination is called a court order whilst in arbitration it is called an arbitration award
- All methods have a neutral third party representative preside over the case
- All methods allow for legal presentation for the parties
- The neutral third party takes in all of the evidence presented by the parties and thus formulates a decision based on the evidence
- A binding decision can be eventually made through all methods. This can be either automatically binding through judicial determination and arbitration, or by signing a deed of settlement such as in mediation or conciliation
- All methods of dispute resolution require that the parties are in attendance to decide the compromise or resolution