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Alternative Dispute Resolution and ATE insurance

Alternative Dispute Resolution or ADR is the procedure for settling disputes without litigation. This includes procedures such as arbitration, mediation, adjudication or negotiation using a qualified neutral intermediary of the parties’ choice.

This page is intended as a brief introduction to ADR for both commercial disputes and clinical negligence cases.

It may seem strange that ATE or litigation insurance can be used for this purpose but essentially, Temple’s cover gives you and your clients a choice about how their dispute or claim can be settled. Here at Temple Legal Protection we support any access to justice initiative which can resolve litigation earlier as long as it produces a satisfactory outcome for the insured party.

We have significant experience settling many cases in this way. Below are some answers to frequently asked questions we are asked about ADR and the relationship with litigation/ATE insurance.

Does Temple’s insurance cover the adverse costs of an ADR process?

Yes, our insurance does cover all forms of ADR process – as long as the insured is legally advised to undertake it.

Many forms of ADR are ‘cost neutral’ and some mediations such as the NHSR scheme for clinical negligence claims provide that mediators’ fees are covered by the opponent. It will, however, be comforting to note that Temple’s insurance provides cover in the event of an adverse cost or own disbursement risk.

Can litigation/ATE insurance cover be obtained for a specific process such as arbitration?

Yes. Temple can provide specific cover for arbitration and adjudications, or build such cover into a wider indemnity.

How much are litigation/ATE insurance premiums for ADR cover?

Our premiums are always competitive and proportionate to the risk being insured.

Is ADR compulsory?

Not at present, but there is strong recent judicial opinion which encourages parties to a dispute to consider forms of ADR before embarking on potentially expensive and prolonged court action. It is possible sanctions could be ordered by a court if a party unreasonably refuses to consider ADR.

Is ADR suitable for all types of legal disputes?

Yes, but it is important to choose the method of ADR carefully as some disputes may be more appropriate for arbitration – such as complex construction cases – whereas mediation appears more suited for personal injury and clinical  negligence cases.

You may also want to read

For commercial ADR and litigation insurance

For clinical negligence mediation and ATE insurance you may also want to read

For more information or to discuss a case you are considering ADR for, please contact either David Chase about a commercial dispute on 01483 514424 (email david.chase@temple-legal.co.uk) or David Stoker regarding mediation for a clinical negligence case on 01483 514423 or via email to david.stoker@temple-legal.co.uk

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