Non-Court Dispute Resolution – NCDR

The Civil Procedure Rules have long placed a duty on the parties involved in a dispute to consider if the dispute can be settled through negotiation or Alternative Dispute Resolution (ADR) without commencing proceedings.

On 1^st October 2024, the CPR made some changes. Following the landmark Court of Appeal decision of Churchill v Merthyr Tydfil County Borough Council, the courts now have the power to order parties to delay commencing proceedings to engage in mediation or other non-court dispute resolution processes. However, the right to a fair and public hearing through normal methods is still being upheld.

In this article, we will take you through the changes and their impact and how the Backhouse team can help you if you are facing a dispute.

1. Promotion and Integration of ADR:

The CPR now explicitly encourages the use of ADR, in an attempt to resolve disputes outside traditional court proceedings. The changes also place emphasis on making ADR a core component to settling disputes and the courts role in ordering or encouraging parties to use ADR, moving more towards proactive facilitation.

2. Court-ordered ADR:

To further support the facilitation of ADR, the courts have also been granted powers to order participation in the process, solidifying the courts authority to push ADR where necessary.

3. ADR & Case Management:

In regard to case management, the courts must now evaluate whether ADR is appropriate. The court will need to determine whether to order the parties to participate in ADR or encourage them to do so voluntarily.

4. Costs for Non-Compliance:

During a dispute, costs can be awarded at the court’s discretion, and now the parties’ genuine engagement with ADR will be taken into consideration. If a party has failed to comply with an order for ADR or unreasonably failed to engage, there will be cost implications.

The changes to the CPR makes it clear that parties should consider non-court dispute resolution from the outset of a dispute and on a regular basis as proceedings progress. These uncontroversial changes are welcomed, given the broad range of disputes encompassed within the civil justice system and the ability to amicably settle matters.

Parties will now have to include ADR as part of their dispute resolution strategy to avoid running the risk of cost sanctions from the court if you refuse to participate. Parties to litigation can expect applications to be made asking for ADR to be ordered and for courts to make such orders of their own volition.

If you would like any legal advice in connection with a dispute or would like further information about the changes to the Civil Procedure Rules, contact our expert Dispute Resolution Team.

Tel:       01245 893400
Email:  info@backhouse-solicitors.co.uk
Visit:    17 Duke Street, Chelmsford, CM1 1JU
Or send us a message through the Contact Us page on this website.