A. Motivation To Resort To Arbitration

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A.

Motivation to resort to arbitration

ADR has been both; increasingly used alongside, and integrated formally, into
legal systems internationally in order to capitalise on the typical advantages of
ADR over litigation:
· Suitability for multi-party disputes

· Flexibility of procedure - the process is


determined and controlled by the parties
the dispute

· Lower costs

· Less complexity ("less is more")

· Parties choice of neutral third party (and


therefore expertise in area of dispute) to
direct negotiations/adjudicate

· Likelihood and speed of settlements

· Practical solutions tailored to parties’


interests and needs (not rights and wants,as
they may perceive them)

· Durability of agreements

· Confidentiality

· The preservation of relationships;[11] and


the preservation of reputations.
The international literature on ADR identifies five major outcomes from ADR.
They are:
 increased settlement
 improved satisfaction with the outcome or
manner in which the dispute is resolved
among disputants;
 reduced time in dispute
 reduced costs in relating to the dispute
resolution
 increased compliance with agreed solutions.
Among stakeholders there is broad agreement that dispute resolution through
ADR mechanisms can be beneficial. Nevertheless, there are some significant
variations among stakeholders about the extent and nature of those benefits
for disputants. ADR practitioners are most enthusiastic about the benefits of
ADRtake-up. Lawyers and disputants tend to be more qualified with regard to
the actual benefits associated with ADR.

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