John Keers BL, Director of the LLM in International Commercial Law and ADR at Ulster University and Co-founder of the Consumer Code for Online Dispute Resolution discusses the predicted increase in disputes facing local businesses and how Alternative Dispute Resolution can help organisations get back to business as usual.
The continuing delay in our court system during the Covid-19 pandemic can ultimately be very bad news for businesses. At a time when many courts are simply not sitting – compounded with the likely delay for the cases already in the system - a growing body of evidence suggests that there will be an exponential increase in the number of disputes between businesses and between businesses and consumers remaining unresolved. For many organisations, much of their contingency budget, which was hard fought for and built up over years, will have been depleted during the Pandemic leaving little breathing room for disruptions in cashflow or covering legal fees.
Concerning, too, is that for those who can afford legal representation, the news at the Bar has not been good with many barristers under seven years call facing hard decisions as to whether they can survive going forward. Thankfully, the government has stepped in to assist organisations facing disruption and have provided a window for many to consider next steps. Take for example those barristers facing hardship. Many barristers will have access to some of the various government schemes in place to support them and promote their survival. Solicitor firms have also, in many cases, taken advantage of the likes of the furloughing schemes, no doubt helping to preserve cash reserves within their respective firms.
RELATED: Online dispute resolution platform launched for legal practitioners whilst social distancing
Many businesses will also have done a mixture of the above and are fighting to keep their heads above water. Faced with the prospect of all manner of disputes from employees, customers and suppliers – many of which would not have arisen but for Covid – one might be forgiven for thinking we are heading for a perfect storm. There is the potential for a large increase in disputes, much longer than usual delays in reaching court hearings, a potentially reduced pool of representation to choose from – or worse, no funding available for representation and therefore having to self-represent and navigate the legal system alone.
While this all sounds terribly bleak there are green shoots that are slowly appearing. For example, during the pandemic the Consumer Code for Online Dispute Resolution, based in Northern Ireland, launched a unique alternative dispute resolution (ADR) offering for the UK and Ireland. While ADR is not new to these shores, their platform is unique in that it provides ADR professionals with a complete suite of secure online tools and as a result they can help businesses find a quick and cost-effective resolution to their dispute. This means parties can engage their services remotely and online which is both convenient and cost effective.
The aim of taking these disputes online using CCODR’s platform is to be able to act quickly for the parties involved (usually within four to six weeks). Unlike disputes resolved in the court system, parties stay in control of both the dispute and the resolution. One ADR example is mediation, where the parties will reach an outcome that they have had direct input into rather than a decision handed down from someone who is remote from the dispute. For those who feel they are not able to afford legal representation, there is no requirement to be represented. The process is simple, easy to navigate and a lot less intimidating than the gladiatorial spectacle witnessed in many court rooms. Finally, in all cases, the parties know the costs of the ADR professional from the outset, allowing peace of mind for the parties that they are not depleting further their businesses’ cash reserves.
Without a doubt there will be increased pressure on businesses as a result of the pandemic, but assistance is out there through the more traditional litigation route or through new innovative methods such as online ADR.
For more information on the Consumer Code for Online Dispute Resolution’s newly launched Online Dispute Resolution platform, visit www.ccodr.com.
