When Negotiation Does Not Work: What’s Next, Alternative Dispute Resolution Method or Court Litigation?

When Negotiation Does Not Work: What’s Next, Alternative Dispute Resolution Method or Court Litigation?

Negotiation is easier and often the first choice among the Alternative Dispute Resolution (ADR) methods. This is because it involves only the disputing parties and does not require formalities or participation of any third party.

However, very often, the disputing parties can not settle the dispute during negotiation. Luckily, other ADR methods are available for settling disputes and these involve a third person that helps to reach a solution.

What are the other ADR methods available?

Other than Negotiation, ADR methods available for disputing parties are Mediation, Conciliation, Adjudication and Arbitration. 

Resolving disputes in courts

Litigation in court is the most common and well-known method to resolve legal disputes. It is suitable for every type of dispute or matter. Decisions are easily recognizable and enforceable. The decision is taken by a single judge or a panel of judges depending on the country, the type of court and the matter in dispute. Judges are identified by the law and can only apply relevant laws of the state. Some subjects are covered by a law reserve, therefore they cannot be decided with methods other than court litigation.

Resolving disputes outside courts

Resolving disputes outside the national courts is possible using Alternative Dispute Resolution methods. The most popular methods are arbitration and mediation, both of these methods require the involvement of a third person. However, there is a substantial difference between these two methods. In mediation, the mediator can only facilitate the disputing parties in settling the dispute; while in arbitration, the arbitrator has the power to issue a decision that concludes the dispute and to bound the disputing parties. 

Advantages of ADR over Court Litigation

ADR methods are much more advantageous over court litigation, namely flexibility. Disputing parties can agree on the majority of the proceeding’s elements. In this way, the ADR method chosen could fit both parties’ needs better, for instance, the expertise and experience of the third person involved in the ADR proceeding are from the relevant field. 

The most recently discovered advantage of ADR is the introduction of Online Dispute Resolution (ODR). This is a new method that is just introduced. ODR helps the disputing parties to resolve their dispute quickly, in fact, the whole proceeding takes place online, and contrary to what happens in court litigation, it does not require parties involved to be physically present in the same place. Moreover, all the documents of the case can be transmitted online saving parties from travelling with printed documents. Lastly, a list of experienced neutrals can be provided by dispute resolution centres. In this list, parties can find the most suitable person to help them in settling the disputes.

THAILAND ARBITRATION CENTER (THAC)

The Thailand Arbitration Center (THAC) is an institution that provides alternative dispute resolution services, comprising of arbitration and mediation, for cross-border disputes. It is established by the Act of Arbitration Center B.E. 2550 (2007). The THAC was first founded and commenced its operation in 2015, intending to promote and strengthen the alternative dispute resolution system and services in Thailand. 

The Thailand Arbitration Center is located in the heart of Bangkok, one of the most international and vibrant cities in South-East Asia. The THAC is easily accessible with its convenient locale in the vicinity of international airports. It offers high standard ADR services, affordable administration fees and state-of-the-art facilities for in-person and remote hearings (https://thac.or.th/rooms/).

The latest services introduced by the THAC is the Online Dispute Resolution (ODR) platform for arbitration mediation and negotiation, called “TalkDD” (https://odr.thac.or.th/auth/login). This innovative service is easy to use, it can be accessed by laptops, smartphones and tablets with a simple login system.

For further information, please feel free to contact us at [email protected] or +66 (0)2018 1615. THAC is looking forward to helping you.