GOVERNMENT PLEDGES TO SETTLE LEGAL DISPUTES OUT OF COURT

23 Mar 2001 12:00 AM

Arbitration, mediation and independent assessments will bring simpler, cheaper, quicker ways of resolving Government legal cases.

Today the Lord Chancellor, Lord Irvine, announced a major new initiative by Government to promote Alternative Dispute Resolution (ADR) in place of litigation.

In future, Government Departments will only go to court as a last resort, the Lord Chancellor said. Instead, Government legal disputes will be settled by mediation or arbitration whenever possible. Lord Irvine published a formal pledge committing Government departments and agencies to settle legal cases by ADR techniques whenever the other side agrees to it.

Standard Government procurement contracts will in future include clauses on using ADR to resolve disputes instead of litigation and whenever possible claims for financial compensation will be settled by independent assessment instead of going to court.

ADR techniques include arbitration by an independent third party, mediation to help both sides reach an agreement and evaluation by a neutral professional who gives both sides an assessment intended to settle the issue.

Lord Irvine said, ''The Government wants to lead the way in demonstrating that legal disputes do not have to end up in court. Very often, there will be alternative ways of settling the issues at stake which are simpler, cheaper, quicker and less stressful to all concerned than an adversarial court case.

''Alternative Dispute Resolution techniques have evolved as an attractive alternative to formal judicial proceedings. They are a valuable way to accessible justice - providing services and remedies and costs which are proportionate to the issues at stake. Where the other side agrees, the Government is now formally pledged to resolve legal disputes by ADR whenever possible.''

Lord Irvine said that Government departments will now monitor the effectiveness of ADR techniques in settling legal problems. He acknowledged, however, that there will still be cases which are not suitable for ADR such as those involving intentional wrongdoing, abuse of power, public law, Human Rights and vexatious litigants. There will also be disputes where a legal precedent is needed to clarify the law or where it would not be in the public interest to settle.

Notes to Editors

1. The full text of the Government''s pledge on Alternative Dispute Resolution is on the following page.

2. The Lord Chancellor''s Department published a discussion paper on ADR in November 1999. It can be read, together with a summary of responses, on the Department''s website: http://www.open.gov.uk/lcd/consult/civ-just/adr/indexfr.htm

SETTLEMENT OF GOVERNMENT DISPUTES THROUGH ALTERNATIVE DISPUTE RESOLUTION

Government Departments and agencies make these commitments on the resolution of disputes involving them:

- Alternative Dispute Resolution will be considered and used in all suitable cases wherever the other party accepts it.

- In future, Departments will provide appropriate clauses in their standard procurement contracts on the use of ADR techniques to settle their disputes. The precise method of settlement would be tailored to the details of individual cases.

- Central Government will produce procurement guidance on the different options available for ADR in Government disputes and how they might be best deployed in different circumstances. This will spread best practice and ensure consistency across Government.

- Departments will improve flexibility in reaching agreement on financial compensation, including using an independent assessment of a possible settlement figure.

There may be cases that are not be suitable for settlement through ADR, for example cases involving intentional wrongdoing, abuse of power, public law, Human Rights and vexatious litigants. There will also be disputes where, for example, a legal precedent is needed to clarify the law, or where it would be contrary to the public interest to settle.

Government Departments will put in place performance measures to monitor the effectiveness of this undertaking.

Background

Government must ensure that services and remedies sought from the justice system are proportionate to the issues at stake, including costs. In some circumstances, this will involve going to court, but in many, that will not be necessary. Alternative Dispute Resolution (ADR) techniques have evolved as an attractive alternative to the more formal judicial procedures, and as a means of resolving disputes more generally. Supporters of ADR point to real improvements for the user in some kinds of case, either because ADR processes are simpler, cheaper or quicker than using the court system, or because they are less stressful. Different techniques are appropriate to different circumstances, and we - and professional bodies - are continuing to amass information on the factors that determine the best choice.

The benefits of Alternative Dispute Resolution are attractive to Government, both as a promoter of accessible justice, and as a potential party to disputes. We wish to lead by example and take a proactive stance in the use of ADR in the resolution of our own disputes.

Lord Chancellor''s Department Selborne House, 54 Victoria Street, London SW1E 6QW Tel:020-7210 8512/8513 Fax:020-7210 8633 www.open.gov.uk/lcd