Have you ever found yourself in a situation where you are faced with a lengthy court case? Whether it's a dispute between your business and a supplier, an employment dispute with your employer or even a potential consumer dispute, there is an alternative to lengthy and costly court proceedings. Out-of-court dispute resolution offers a quicker and often more efficient and cost-effective way to resolve disputes, so here is an overview of selected alternative dispute resolution methods. In the following articles we will discuss the different types of ADR.
What is alternative dispute resolution?
These are methods that allow parties to settle their differences without having to go to court. There are several main types of ADR, each with its own specific advantages.
Arbitration is in many ways similar to traditional court proceedings (an arbitrator decides the case instead of a judge, but the arbitrator has similar powers, usually takes evidence and the decision involves ordering a court hearing). This procedure is often used in commercial disputes, particularly in international trade. The advantages are speed and the ability to choose an arbitrator with expertise in the field. The result is an arbitral award which carries the same weight as a court judgment and is enforceable.
Mediation is a less formal process in which a neutral person, usually chosen by the parties to a dispute - the mediator - helps the parties to find a mutually acceptable solution and to conclude a so-called mediation agreement. The mediator does not make a binding decision, but moderates and facilitates communication between the parties. This approach is particularly suitable when the parties are unable to communicate on their own and the mediator can bring the parties to an agreement through targeted communication. However, an integral part of mediation is the openness of the parties to reach an out-of-court settlement. Mediation does not result in a decision that can be enforced (although the court can approve the so-called mediation agreement as a settlement, which already has the effect of a court decision).
There is a special mechanism for out-of-court settlement of consumer disputes. In the Czech Republic, this service is mainly provided by the Czech Trade Inspection (CTIA), but in disputes between consumers and lawyers, for example, it is the competent body of the Czech Bar Association. This procedure is free of charge for consumers and helps to resolve disputes with traders, for example over complaints, the quality of goods or services. For example, out-of-court settlement of consumer disputes before the CCI leads to an agreement, but if this cannot be reached, it is possible to file a lawsuit before an ordinary court.
Why choose ADR?
The main benefits are speed and potential cost savings. While court cases can drag on for years, out-of-court settlements can often produce results within weeks or months. It also means less money - you save on court fees and often on expensive legal representation. It also gives you more control over the process and allows you to play an active role in finding a solution.
We used a publicly available AI translation tool to translate this article from Czech to English. Please contact us if any of the above information is unclear to you.
