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Alternative dispute resolution and pre-action process

          Introduction

          3.25 ADR is “a collective description of methods of resolving disputes otherwise than
              through the normal trial process”. 174  The Woolf Report recommended ADR have
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              a fundamental role in civil justice under the new Civil Procedure Rules (CPR),
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              under which courts are required to further the overriding objective  by “actively
              managing” cases, including by “encouraging the parties  to use an alternative
              dispute resolution procedure.”  Similarly, the FTT (PC) rules provide that the
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              tribunal  should,  where  appropriate,  bring  to  the  attention  of  the  parties  the
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              availability of any appropriate alternative procedure to resolve the dispute.

          3.26 ADR  offers  widely  acknowledged  benefits  to  parties,  the  justice  system  and
              society: resolving disputes quickly and at far lower cost to litigation; maintaining
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              relationships  through  a  non-adversarial  dispute  resolution  process;   and

          174   CPR  Glossary,  available  at  http://www.justice.gov.uk/courts/procedure-rules/civil/glossary
          Traditionally ADR is conceived of as “a voluntary process in which a neutral facilitator helps the parties
          reach agreement”, Genn, ‘Court-based ADR initiatives for non-family civil disputes: the Commercial
          Court  and  Court  of  Appeal’,  (Lord  Chancellors  Department,  2002)  p.  1  available  at
          https://www.ucl.ac.uk/judicial-institute/sites/judicial-institute/files/court-
          based_adr_initiatives_for_non-family_civil_disputes.pdf

          175  Lord Woolf wrote that “[in future] …parties should: (i) Whenever it is reasonable for them to do so
          settle their disputes before resorting to the courts; (ii) Where it is not possible to resolve a dispute or an
          issue prior to proceedings, then they should do so at as early a stage in the proceedings as is possible.
          Where there exists an appropriate alternative dispute resolution mechanism which is capable of resolving
          a  dispute  more  economically  and  efficiently  than  court  proceedings,  then  the  parties  should  be
          encouraged  not  to  commence  or  pursue  proceedings  court  until  after  they  have  made  use  of  that
          mechanism,” Lord Wolf, Access to Justice, Interim Report (Lord Chancellor’s Department, June 1995)
          Chapter 4.7.

          176  The overriding objective is to enable the court “to deal with cases justly and at proportionate cost”,
          CPR 1.1.

          177  CPR 1.4(2)(e).

          178   If the parties’  consent  and  where  the  procedure is compatible with the  overriding  objective, the
          tribunal should facilitate the use of the  procedure. Tribunal Procedure (First-tier Tribunal) (Property
          Chamber) Rules 2013 rule 4(1).

          179  Harris note 49 above p. 31.

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