MLL328 ADR: PRINCIPLES AND PRACTICE

EXAM NOTES

TRIMESTER 2 2017

Table of Contents TOPIC 1 - INTRODUCTION ............................................................................................................................. 8

Problems with litigation ............................................................................................................................ 8

Definition of ADR…………………………..…………………………………………………………………………………………………….8

NADRAC’s definition of ADR….…………………………………………………………………………………………………………8

From Alternative to Appropriate: ADR in Australia……….………………………………………………………………….….8

ADR, PDR in Australia………………………………………………..………………………………………………………………………..9

NADRAC’s definition of PDR……………………………………………………………………………………………………………9

An ADR practitioner as a ‘third party’………………………………………………………………………………………………….9

Typical forms of ADR…………………………………………………………….……………………………………………………..…….10

Party Self-determination – key factor in mediation……………………………………………………………………………10

Broad Objectives of ADR………………………………………………………………………………………………………………….…11

TOPIC 2 – ADR IN AUSTRALIA…………………………………………………………………………………………………………….12

Why choose ADR?……………………………………………………………………………………………………………………………….12

Impact on Cost……………………………………………………………………………………………………………………………….12

Impact on Time………………………………………………………………………………………………………………………………12

Impact on Other Outcomes……………………………………………………………………………………………………….…..13

Maslow’s hierarchy of needs…………………………………….………………………………………………………………………..13

Goals of ADR……………………………………………………………………………………………………………………………………….13

ADR in Australia………………………………………………………………………………………………………………………………….14

Court-Related ADR and Out-of-Court ADR………………………………………………………………………………………….14

Court-Related ADR……………………………………………………………………………………………………………………………..15

Multi-door Courthouse………………………………………………………………………………………………………………….15

Future Reform in Australia…………………………………………………………………………………………………………….16

Who Refers?………………………………………………………………………………………………………………………………….16

Referral Screening…………………………………………………………………………………………………………………………17

Australia: Court-annexed or Referred Mediation………………………………………………………………………….18

Court-annexed Mediation in Federal Courts…………………………………………………………………………………18

Court-annexed Mediation in Victoria……………………………………………………………………………………………20

Out-of-Court ADR………………………………………………………………………………………………………………………………22

ADR in the Community……………………………………………………………………………………………………………….23

ADR in the Business Sector…………………………………………………………………………………………………………23

TOPIC 3 – NEGOTIATION………………………………………………………………………………………………………………..25

Negotiation for Resolution……………………………………………………………………………………………………………….25

Prisoner’s Dilemma…………………………………………………………………………………………………………………….25

What is Negotiation?……………………………………………………………………………………………………………………….25

Negotiation Definitions………………………………………………………………………………………………………………26

Types of Negotiation………………………………………………………………………………………………………………….26

Elements of Negotiation………………………………………………………………………………………………………………….26

Advantages of Negotiation………………………………………………………………………………………………………………26

The Orange Story: Interest-Based Negotiation….…………………………………………………………………………….27

How Does a ‘Style’ Influence Negotiation?………………………………………………………………………………………28

Facilitated Negotiation………….………………………………………………………………………………………………………..29

Complex Negotiations…………………………………………………………………………………………………………………….29

Negotiation Types and Strategies …………………………………………………………………………………………………..29

Distributive Negotiation…………………………………………………………………………………………………………….30

Integrative Negotiation……………………………………………………………………………………………………………..30

Comparison……………………………………………………………………………………………………………………………….32

Negotiation Practice: Harvard Seven-Element Preparation Model………………………………………………….32

Negotiation Practice: Elements to a Successful Negotiation……………………………………………………………33

Negotiation Practice: Characteristics of a Good Negotiator…………………………………………………………….33

Negotiation Practice: Preparing for Negotiation……………………………………………………………………………..34

The Role of Lawyers in Negotiation…………………………………………………………………………………………………34

TOPIC 4 – MEDIATION…………….…………………………………………………………………………………………………….36

What is mediation?………………………………………………………………………………………………………………………..36

National Mediator Accreditation System (NMAS) 2015…………………………………………………………….36

Mediation – Is There a Common Definition?…………………………………………………………………………….36

Advantages of Mediation……………………………………………………………………………………………………………...37

The Mediation Process – NMAS Standards…………………………………………………………………………………….38

The Neutral Role of the Mediator……………………………………………………………………………………………..….39

Neutrality and Impartiality - Being ‘Attached yet detached’…………………………………………………….40

Ethical Obligations – Attached yet Detached …………………………………………………………………………..40

Strategies to Maintain Neutrality…………………………………………………………………………………….……….41

Mediation Styles: Neutrality? Intervention?.................................................................................41

Role of Lawyers and Others in Mediation………………………………………………………………………………………42

Mediation Process…………………………………………..…………………………………………………………………………….42

A Case Study Example: Benny’s Case……………………………………………………………………………………………..43

TOPIC 5 – ARBITRATION….……………………………………………………………………………………………………………46

What is Arbitration?…..………………………………………………………………………………………………………………….46

NADRAC’s Definition of Arbitration…………………………………………………………………………………………..46

Arbitration and Determination………………………………………………………………………………………………….46

The International Arbitration Amendment Act 2010………………………………………………………………………47

Commercial Arbitration in Australia……………………………………………………………………………………………….47

Commercial Arbitration Act 2011 (Victoria)……………………..…………………………………………………………….48

Paramount Object of Act…………………………………………………………………………………………………………..49

Scope of Application………………………………………………………………………………………………………………….49

Bringing Arbitration Claims……………………………………………………………………………………………………….49

Arbitration Agreement……………………………………………………………………………………………………………..50

Appointment of Arbitrators………………………………………………………………………………………………………50

Grounds for Challenge………………………………………………………………………………………………………………51

Interim Measures……………………………………………………………………………………………………………………..51

Conditions for Granting Interim Measures……………………………………………………………………………….51

Equal Treatment of Parties……………………………………………………………………………………………………….52

Determination of Rules of Procedure……………………………………………………………………………………….52

Med-Arb Model……………………………………………………………………………………………………………………….52

Making Decision………………………………………………………………………………………………………………………53

Settlement…….………………………………………………………………………………………………………………………..53

Award…………..…………………………………………………………………………………………………………………………53

Hybrid and Combined Processes …………………………………………………………………………………….……………..54

Fairness of Arbitration…………………………………………………………………………………………………………………….55

Consumer Dispute Arbitration…………………………………………………………………………………………………..56

National Arbitration Forum……………………………………………………………………………………………………….56

Employee Dispute Arbitration……………………………………………………………………………………………………57

TOPIC 6 – FAMILY DISPUTE RESOLUTION ………………………………………………………………………………………58

Understanding Family Dispute …………………..…………………………………………………………………………….…….58

Family Dispute Resolution in Australia ……..……………………………………………………………………………………58

Referrals to Family Dispute Resolution………………………………………………………………………………………59

Family Counselling……………………………………………………………………………………………………………………..59

Functions of Family Consultants…………………………………………………………………………………………………60

Family Dispute Resolution (‘FDR’)………………………………………………………………………………………………60

Arbitration in Family Disputes……………………………………………………………………………………………..…....61

Courts’ Role in Relation to Arbitration ……………………………………………………………………………..……….61

Consequences of Failure to Comply with Order…………………………………………………………………………61

Attending Family Dispute Resolution before Applying for Parenting Order……………………………….61

Four Kinds of Certificates………………………………………………………………………………………………………….61

Parents Encouraged to Reach Agreement…………………………………………………………………………………62

Parenting Plan…………………………………………………………………………………………………………………………..62

Obligations of Family Dispute Resolution Practitioners…………………………………………………………….63

Family Dispute Resolution Not Attended………………………………………………………………………………….63

Power Imbalance in Family Disputes……………………………………………………………………………………………..64

NAMA’s Standards……………………………………………………………………………………………………………………64

Disadvantage for Women in ADR……………………………………………………………………………………………..65

Evaluation of Family Mediation Practice and the Issue of Violence………………………………………….66

Neutrality and Intervention……………………..………………………………………………………………………………66

Mandatory ADR and Choosing an ADR Process …..........…………………………………………………………….….66

Should an ADR process be used?……………………………………………………………………………………………..66

What type of ADR process?………………………………………………………………………………………………………67

Other Changes: Multi-Option or Mandatory Attendance?...........................................................68

Collaborative Practice………………………….………………………………………………………………………………………..69

Collaborative Practice in Australia…………………………………………………………………………………………….70

Supporting Collaborative Practice – In Practice Groups ……………………………………………………………70

Process Characteristics of the Collaborative Process ……………………………………………………………….70

Stages of Collaborative Process………………………………………………………………………………………………..71

Skills of the Collaborative Practitioner……………………………………………………………………...................71

Timing ……………………………………………………………………………………………………………………………………..71

Description: Partnering and Dispute Resolution Boards…………………………………………………………..72

Elements of Collaborative Practice…………………………………………………………………………………………..72

Advantages of Collaborative Practice……………………………………………………………………………………….73

Where Collaborative Practice is Not Appropriate……………………………………………………………………..73

Stages of Collaborative Process………………………………………………………………………………………………..73

TOPIC 7 – CRIMINAL RESTORATIVE JUSTICE PROGRAMS………………………………………………………………75

A Case Study: DalHousie Facebook Scandal…..……………………………………………………………………………….75

What is Restorative Justice?…………………………….…………………………………………………………………………….77

Changing Lenses……………..………………………………………………………………………………………………………..78

Criminal Justice vs Restorative Justice: Two Different Views…………………………………………………….78

Criminal Justice vs Restorative Justice: Three Different Questions……………………………………………78

Essential Elements of Restorative Justice………………………………………………………………………………….78

Victims’ Needs………………………………………………………………………………………………………………………….79

Offenders’ Needs……………………………………………………………………………………………………………………..80

Communities’ Needs………………………………………………………………………………………………………………..80

Restorative Justice Programs…………………………………………………………………………………………………………81

Features of Restorative Justice Programs…………………………………………………………………………………82

Main Categories of Restorative Justice Programs…………………………………………………………………….83

Restorative Justice in Australia: Crimes (Restorative Justice) Act 2004………………………………………….84

Objectives of the Act……………..…………………………………………………………………………………………………84

No Obligation to Participate……………………………………………………………………………………………………..85

Application of Act: Less Serious Offences………………………………………………………………………………….85

Application of Act: Serious Offences………………………………….……………………………………………………..85

TOPIC 8 – FINANCIAL OMBUDSMAN SERVICE…….………………………………………………………………………..86

A Case Study: CommInsure Scandal……………..……………………………………………………………………………….86

Financial Ombudsman Service………………………………………………………………………………………………………89

FOS and Its Members……………..……………………………………………………………………………………………….89

Resolving Disputes…….…………………………………………………………………………………………………………….90

Dispute Resolution Process 1: Registration and Referral………………………………………………………………..91

Dispute Resolution Process 2: Case Management…………………………………………………………………………..91

Dispute Resolution Process 3: Decision…………………………………………………………………………………………..91

Resolution Approaches…………………………………………………….…………………………………………………………….92

Conciliation Conference……………..……………………………………………………………………………………………93

What is Negotiation?……………………………………………………………………………………………………………….94

TOPIC 9 – ADR IN HEALTH CARE…………………………………………………………………………………………………..95

Why Patients Sue Doctors…………..……………………………………………………………………………………..…………95

Australian Medical Negligence Statistics………………………………………………………………………………….95

Claimants’ Extra-legal Aspirations……………………………………………………………………………………………95

Experience of New Zealand……………………………………………………………………………………………………..96

The Power of Apology …………………………………………………………………………………………………………….96

Australian Health Ministers Advisory Committee (AHMAC)…………………………………………………….96

Medical Dispute Resolution: Health Complaints Commissioners………………………………………………….97

Insurers and Injury Dispute Resolution Arrangements……………..…………………………………………….98

Victoria: Office of Health Complaints Commissioner……………………………………………………………………98

The Complaints Process………………………………………………………………………………………………………….99

Handling Complaints………………………….…………………………………………………………………………………..101

Apology in Legal Setting………………………………………………………………………………………………………………101

Apology Legislation in the USA……………..……………………………………………………………………………….101

Australian Apology Legislation……………………………………………………………………………………………….102

NSW: Civil Liability Act 2002……………………………………………………………………………………………………102

VIC: Wrongs Act 1958……………………………………………………………………………………………………………..103

Core of the Issue……………………………………………………………………………………………………………………..104

Structure of Apology: An ADR Perspective……………………………………………………………………………….104

TOPIC 10 – CONFIDENTIALITY IN ADR PROCESSES……………………………………………………………………….106

Confidentiality in ADR Proceedings ………………………..…………………………………..……………………………….106

Confidentiality and the Admissibility of ADR Proceedings……………………………………………………….106

Implied Confidentiality……………………………………………………………………………………………………………107

Understanding Confidentiality: A Case Study………….…………………………………………………….…………….107

Progress in Promoting Confidentiality……………………….………………………………………………………………..112

Why Choose Arbitration…………………………………………………………………………………………………..…….112

Confidentiality in Med-Arb Model………………………………………………………………………………………….115

Reporting Requirements for ADR Practitioners …………………………………………………………..………………116

What Constitutes Child Abuse?…..………………………………………………………………………………………….117

TOPIC 1 - INTRODUCTION

- Expensive

- Time consuming

- Antagonism

- Unintended consequences

- Issue of fairness

-

ADR, a shorthand for Alternative Dispute Resolution, is the term commonly used to include all

forms of non-adjudicatory third party dispute processes.

ADR refers to a variety of processes that help parties resolve disputes without a trial. These

processes are generally confidential, less formal, and less stressful than traditional court

proceedings.

An increasingly important aspect of ADR is the privilege which attaches to both parties in an

alternative dispute resolution proceedings and the individual(s) presiding over the proceeding.

National Alternative Dispute Resolution Advisory Council (NADRAC) definition of ADR

ADR is an umbrella term for processes, other than judicial determination, in which an impartial

person assists those in a dispute to resolve the issues between them.

ADR is commonly used as an abbreviation for alternative dispute resolution, but can also be

used to mean assisted or appropriate dispute resolution. Some also use the term ADR to

include approaches that enable parties to prevent or manage their own disputes without

outside assistance.

In the past, dispute resolution processes that were alternative to traditional court proceedings

were often referred to as ‘alternative dispute resolution’.

However, more recently, ADR has been used to refer to appropriate dispute resolution (can also

be an acronym for ‘assisted’, ‘additional’ or ‘affirmative’ dispute resolution processes.

ADR is increasingly being seen not as an alternative to the formal justice system, but as a

dispute resolution system in its own right.

Problems with litigation

Definition of ADR

From Alternative to Appropriate: ADR in Australia

Appropriate dispute resolution – the use of appropriate rather than alternative has been

cemented in Victoria, with legislation in that State now referring to Appropriate Disputes

Resolution. These shifts are significant and signal not only a policy view about the importance

of non-court DR processes but also a recognition that such processes will often support more

effective forms of DR.

Primary dispute resolution – In the Family Court of Australia and related contexts, the term

Primary Dispute Resolution (PDR) was used in the past to describe similar processes.

Throughout these notes , ADR is used to describe the processes that may be used within or

outside courts and tribunals to manage, resolve or determine disputes, or to reach agreement

where the processes do not involve traditional (more adversarial) trial or hearing processes.

ADR is also used to describe processes that may be non-adjudicatory as well as adjudicatory

and which may produce binding or non-binding decisions. ADR includes processes described as

negotiation, mediation, case appraisal and arbitration.

NADRAC’s definition of PDR

PDR is a term used in particular jurisdictions to describe dispute resolution processes which

take place prior to, or instead of, determination by a court.

ADR processes will usually involve a third party (often referred to as an impartial ADR

practitioner or more traditionally as a ‘skilled helper’) who either assists the parties in a dispute

or conflict to reach a decision by agreement, or makes a recommendation or a decision that

may be binding or non-binding upon the parties.

NADRAC has described ADR as an ‘umbrella terms for processes, other than judicial

determination, in which an impartial person assists those in dispute to resolve the issues

between them.’

There are however now exceptions to this definition that arise in ADR. For example

‘collaborative practice’ (discussed in Topic 6) involves a team approach and does not ordinarily

involve a third party who is an impartial facilitator (although some collaborative team models

may promote this).

Judicial determination may also involve grafted ADR processes and techniques, and may be

preceded by judicial dispute resolution processes.

However, there is significant debate over whether ADR definitions should be broad or narrow –

NADRAC’s view is that it is better to ‘describe’ rather than ‘define’ ADR processes.

ADR, PDR in Australia

An ADR practitioner as a ‘third party’

NADRAC notes that DR processes may be classified as facilitative, advisory or determinative:

- Facilitative processes involve a third party, often with no advisory or determinative role,

providing assistance in managing the process of DR. These processes include mediation

and facilitation

- Advisory processes involve a third party who investigates the dispute and provides

advice on the facts and possible outcomes. These procedures include investigation, case

appraisal and dispute counselling

- Determinative processes involve a third party investigating the dispute, which may

include a formal hearing, and the making of a determination, which is potentially

enforceable. These processes include adjudication and arbitration, and may be binding

or non-binding

Although the NADRAC descriptions have helped to produce some increased certainty in the

area of ADR definitions, there are still considerable variations in the way in which various ADR

processes are defined and used within Australian courts and tribunals and outside the litigation

system.

The first obstacle to an understanding of the role of ADR is the sheer breadth and diversity of

activities to be taken into account, a breathtaking range of approaches and strategies that we

lump under the heading of ADR.

An obvious starting point is the typical forms of ADR: negotiation, mediation and arbitration.

- Negotiation- the most basic form of ADR is negotiation. At its core, two people simply

talk about a problem and attempt to reach a resolution both can accept.

- Mediation- it follows that mediation started when two negotiators, realizing they

needed help in this process, accepted the intervention of a third person.

- Arbitration- if the third party was asked to make a decision or placed the decision in the

hands of some arbitrary mechanism, the process was arbitration.

Party self-determination is the central value of mediation. Unlike the adjudication process

where a neutral third party, such as a judge or arbitrator, applies law to the facts to reach a

result, the mediator assists the disputants in applying their own values to the facts and reaching

a result.

These values may include –

- the law

- cultural interests

Typical forms of ADR

Party self-determination – a key factor in mediation