Advantages and disadvantages of dispute resolution processes

Advantages

• It is private - there is no public record of any proceedings, although not necessarily confidential
• Comparative informality
• Speed, although this depends very much on the manner in which the arbitrator conducts the arbitration
  

• The parties can agree on an arbitrator with relevant expertise in the matter
  The arbitrator's award can be enforced as a judgment of the court
  

Disadvantages

• The parties must bear the costs of both the arbitrator and the venue
• Sometimes arbitration simply mimics court processes and so you do not get the advantage of informality and speed
• Limited powers of compulsion or sanction if one party fails to comply with directions of the arbitrator, which can significantly slow down the process
• The arbitrator has no power to make interim measures, such as for the preservation of property
• Limited appeal rights

Advantages

• The parties can select the expert or the characteristics of the expert
• The expert can act as an investigator
• Seldom lengthy oral arguments or legal submissions
• No cross examination or formal evidence
• Streamlined, speedy and flexible procedures as agreed between the parties and the expert
• Less expensive

Disadvantages

• The expert cannot go beyond the jurisdiction specified in the contract
  

• The expert determination is not supported by statute
  

• No testing of evidence or assertions
• The expert's powers are limited
• Limited opportunities for appeal
• The expert's determinations must be enforced by commencing court proceedings

Advantages

• Generally regarded as the highest quality decision making
• Judges can compel the parties to comply with timeframes and have powers of sanction for non-compliance
• Judges have the power to make orders to provide interim relief to protect a party's position pending the final judgment
  

• There are well defined rights of appeal in cases where errors of fact or law are made
• Judgments are enforceable within Australia

Disadvantages

• Potentially greater costs if the dispute is not well managed or the other party seeks to delay the proceedings
• Potentially longer time period to obtain a judgment
• Proceedings are generally conducted in public
• Judgment will be subject to appeal

Advantages

• Informal process
• Can be initiated at any time as agreed between the parties
• Allows commercial relationships to be maintained during and after the dispute
• Parties can reach agreement incorporating flexible approach to outcomes

Disadvantages

• If the parties do not agree, there is no outcome and the mediation has failed
• The mediator has no power to order the parties to do or to refrain from doing anything
• Information may be 'given away' in the process