Consumer Disputes
When there is a dispute between a consumer and a supplier, there is a range of options for resolving the dispute without going to court. These options are often quicker and cheaper, and lead to a more satisfactory solution, than taking legal action. In a study conducted in England and Wales, in relation to the use of ADR in settling consumer disputes in contrast to traditional litigation, overall, 62% of consumers who used ADR found the process to be simple. While ADR is optional, parties to consumer disputes should always consider settling their dispute out of court for the following reasons:
- ADR procedures are often completed quicker than court proceedings costs are often lower. In this regard, it is important to note that you cannot normally recover lawyers' fees as part of a 'small claim' (which is any claim valued below £10,000)
- ADR procedures are often completed in private and conducted confidentially, avoiding the risk of adverse publicity and reputational damage that could arise from a court case in some types of ADR (such as mediation) the parties to the dispute decide the outcome themselves rather than having it imposed on them
- ADR procedures can be more flexible in terms of their outcome and in terms of whether and how they apply strict rules of law. It may, therefore, be possible to achieve outcomes that a court could not order or to get a result that the parties think is fairer than that dictated by law
- ADR procedures can be less confrontational or adversarial than court proceedings. Not only can this reduce stress, but it can also be an important consideration when the parties know that they want to have, or must have, an ongoing relationship failing to consider ADR can be penalised by the court
