Media

Resolution scheme aims to have smaller disputes all over in a day

The Australian Financial Review - 27 May 2005
By Marcus Priest

Small businesses will be offered a new dispute-resolution process for claims under $100,000, which offers parties the chance of resolving their differences in one day.

While there are a number of bodies offering alternative dispute resolution (ADR) in some specialist areas, such as franchising, construction, and also small-claims tribunals, the new process known as concise dispute resolution (CDR) has been developed as the first broad-based ADR system for small business.

Run through the Institute of Arbitrators and Mediators of Australia, the scheme has been loosely modelled on a number of ADR processes around the world, including the system now being run through the NSW Workers Compensation Commission.

"What we are trying to do is offer something which isn't overly complicated, and something that gives parties that don't want to spend a lot of money but want the opportunity to air their dispute, and the opportunity to have it resolved in a structured way," said one of CDR's architects, Sydney barrister Ian Bailey, SC.

Mr Bailey said CDR could also be broadened to deal with complaint-based disputes, such as consumer complaints to the Australian Competition and Consumer Commission and other consumer-oriented tribunals.

The CDR process is based on an agreement between the parties in dispute to comply with CDR rules, a timetable and any decision. Decisions are not be appealable.

An initial teleconference convened by a graded arbitrator, known as the resolver, between the parties determines the course of dispute resolution, with the possibility that the dispute may be resolved just on the basis of written submissions.

Following the teleconference, a one-day conference is convened. Initially the resolver attempts to settle the dispute by negotiation and conciliation. If this fails the resolver adopts a decision-making role.

Legal assistance is available to prepare for the one-day conference, but legal representation at the conference is discouraged.

We gratefully acknowledge the permission from Marcus Priest and The Australian Financial Review to reprint this article.