LAWS398:CIVILPROCEDURE
COMPREHENSIVENOTES
SEM12017
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LAWS398WEEK7CivilProcedure:IntroductiontoCP
CriminalvsCivilProcedure–Recap
- CriminalProcedureo StatevDefendanto Statemorepowerfulo Outcomeisusuallypunishmento Policeandcourtshavemajorroleinenforcemento Higherprofileinmediao Smallbodyofunderlyingsubstantivelawapplieso Statebearsmostcosts
- CivilProcedureo Privatevprivate(includingGovernment)o Partypowercanbeuneveno Manypossibleoutcomesusuallyinvolvingmoneyo Courtsandindividualsenforce(+bailiffs,sheriffs)o MoreCommonandAffectsmorepeopleo Hugebodyofunderlyingsubstantivelawapplieso Individualbearmostcosts
ExploringKeyThemesinCivilProcedure
- Thefeaturesandshortcomingsoftheadversarialsystem- The“principles”ofopenjusticeandproceduralfairnessinthecivil
context- EfficiencyvtheRighttobeheard- Accesstojustice- Problemsolving,appearingincourt,communicatingforlitigation
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CivilProcedureClichés
- JusticedelayedisJusticedenied
o Thisissomethingjudgeshavebeensayingforcenturieso Itmakesalotofsense
§ Ifittakesforeverandcostsafortunetogetjustice,whatkindofjusticeisthat?
§ Ifyoutakeforeverandcostsafortune,youwilldenyalotofpeoplethisjustice
• E.g.mostpeoplewon’tevenstartalitigationduetothelengthycostsandtimeconsumingaspectontheirlife
• E.g.ifyoudostartalitigation,therearealotofthingsthatcangowrongduringthatextremelylongtimeperiod
- RoughJusticeisnoJustice
o Thisisalsotrueo Ifyoudonotgivepeopleaproperhearing,youwillnotget
justiceo Ifthejusticeprocessistoofast(technocraticjustice),howisthis
justice(dueprocessmodelisbetter)o EfficiencyvtheRighttobeheard
AdversarialorInquisitorialSystem
- Australiahasanadversarialsystem- MostEuropeancountrieshaveaninquisitorialsystem- Australia
o Commonlawsystemo Adversarialsystem
- Europe
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o Civillawsystem
AdversarialSystem
- Partiescontroldispute
o Partiesdefinedisputeandpresentevidenceandargumento Partieshavealotofcontrolo Plaintiffhasalotofcontrol
§ Decidewhatcasetobringandhowtobringito Defendanthascontrol
§ Cross-claim- Courtdecisionsformprecedent,bindingonfuturedecisions
o Precedentsformthelaw- Trialsarelengthyandinvolveextensiveevidence
- Judgeasumpire–impartial;roleisreactive(cfproactive)
o Impartialarbiter- Emphasisonoralargument/evidenceespeciallycross-examination
- Partiesbearthecosts
InquisitorialSystem
- Mainlycodifiedlaw.Priorcasesaremerelypersuasive
- Norigidseparationbetweentrialandpre-trialphases
- Minimalrulesofcourt-roompractice
- Thejudge’sroleisproactiveandinquisitive
- Strongemphasisondocumentaryproof
- Virtuallynocross-examinationandoftennophysicalhearing(i.e.
entirematterheard“onthepapers”)
- Casesaremuchshortergenerally
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CivilProcedure–Definition
- “[R]uleswhicharedirectedtogoverningorregulatingthemodeorconductofcourtproceedings”
o McKainvRWMillerandCo(SA)PtyLtd(1991)174CLR1at26-
27perMasonCJ- CivilProcedurewillteachyouhowoursocietyresolvesdisputes
betweenprivateparties(bothwithandwithoutcourt)andtherolelawyersplayinthatprocess
SourcesofCivilProcedureLaw
- ApplicableinNSW
o CivilProcedureAct2005(NSW)o UniformCivilProcedureRules2005(NSW)o FederalCourtRules2011(Cth)o FederalCourtofAustraliaAct1976(Cth)o CourtActs
§ SupremeCourtAct1970§ DistrictCourtAct1973§ LocalCourtAct2007
o CourtPracticenotescreatedbyJudgesinaccordancewithpowergrantedbyCPAandUCPR
PerceivedProblemswithCivilProcedure
- Cost- Delay- Lackofaccess(usuallyduetoCostandDelay)
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- Uncertainty- Unfairness- Excessivecomplexity
CivilProcedureThemes:BalancingCompetingObjectives
- Civilprocedureisallaboutbalancingcompetingobjectives.Someofthekeyareaswhereobjectivesofcivilprocedureclashare:
o 1.Thetensionbetweenefficiency(costanddelayreduction)andjustice/proceduralfairness
§ SeeAONvANU(mostimportant)
§ SeeQueenslandvJLHoldings§ SeeERAvArmstrong§ Ittakestimeandmoneytoexploreevidencesoincreases
inefficiencycanthreatenjusticeo 2.AccesstoJusticeandtheroleoflitigationinsociety
§ A)DoessocietybenefitmorefromcarefulbutexpensivejusticewhichsetsgoodprecentsforsocietytofollowOR
§ B)Fromquickandcheapjusticewhichisaccessibletoeveryone?
• HazelGenn,JudgingCivilJustice,HamlynLectures,
2008,CambridgeUniversityPress,Chapter1o 3.Openjusticevstherighttoprivacy
§ Openjusticeiskeyforjudicialaccountabilityandfaithinourjusticesystembutalsoasignificantinvasionofprivacyandcaninvolvevulnerablepartiessuchaschildrenandthedisabled
• RinehartvRinehart(2014)FCA1241(paras21-31)o 4.Theroleofjudicialdiscretioninmanagingcases
§ Toomuchjudicialdiscretionleadstouncertaintyforlitigantsandreducedjudicialaccountabilitybutrigidrulesofproceduredonotcaterforthevarietyoflitigantsandtheirneeds
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OpenJustice
- ‘…openjusticeisoneofthemostfundamentalaspectsofthesystemofjusticeinAustralia.Theconductofproceedingsinpublic…isanessentialqualityofanAustraliancourtofjustice.’
o JohnFairfaxPublicationsPtyLtdvDistrictCourtofNSW(2004)61NSWLR344(SpigelmanCJ)
- Howcanjusticebeclose?o Closedcourtorders(familylaw)o Nonpublicationorders(defamation)o Pseudonymorders(migration/children)o Ordersforanonymouswitnesses
§ E.g.useofscreens,CCTV,pseudonymorders(WitnessvMarsden(2000)49NSWLR429)
o Confidentialityofdocuments(NAKvStarkeyandSevenNetwork(Operations)vJamesWarburton(No.1)
- “…thereisnoprincipleinourlawbywhichdocumentsareprotectedfromdiscoverybyreasonofconfidentialityalone.Nonetheless,itisrecognisedthatdiscoveryconstitutesaseriousinvasionoftheprivacyandconfidentialityofalitigant’saffairsand,whiletheprocessformspartofcivilprocedurebecauseofthepublicinterestinensuringthatjusticeisdonebetweentheparties,itoughtnotbeallowedtoplaceuponthelitigantanyharsherormoreoppressiveburdenthanisrequiredtopermitjusticetobedone…”
o JusticeBreretonNAKAustraliaPtyLtdvStarkeyConsultingPtyLtd[2008]NSWSC1136
RinehartvRinehart[2014]FCA
- BiancaHopeRinehartvGeorginaHopeRinehart[2014]FCA1241(PARA21-31)
- Oneofabout50Rinehartcases- Setsoutprinciplesofopenjustice:
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o 1.Suppressionordermustbenecessarytopreventprejudicetoadministrationofjustice
o 2.Openjusticefundamentalprincipleofjusticesystemo 3.Courtmustconsiderprimaryobjectiveistosafeguardpublic
interestinopenjustice(suppressionorderlegislationsupportsthis)
o 4.Needtodojusticeispartof“necessity”principleo 5.Mediareportingiscorollaryor“openjustice”o 6.Possibleembarrassment,lossofreputation,consequential
lossisgenerallypricepartiesmustpaytolitigateo 7.Recognisedexceptionsincludewhereopennesswoulddestroy
justicebyvindicatingblackmailerorseriouslyaffectcommercialvalueofsubjectmatter
StatutorypowerstodepartfromOpenJustice:CivilProcedureAct2005
- Section71:Businessintheabsenceofthepublic
o SubjecttoanyAct,thebusinessofacourtinrelationtoanyproceedingsmaybeconductedintheabsenceofthepublicinanyofthefollowingcircumstances:…
o B)ifthepresenceofthepublicwoulddefeattheendsofjustice,o C)ifthebusinessconcernstheguardianship,custodyor
maintenanceofaminoro D)iftheproceedingsarenotbeforeajuryandareformalor
non-contentiouso E)ifthebusinessdoesnotinvolvetheappearancebeforethe
courtofanyperson
CourtSuppressionandNon-PublicationOrdersAct2010
- EmpowersCourttomakeasuppressionornon-publicationorder- Isinadditiontoinherentpower
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- S6providesthecourt“musttakeintoaccountthataprimaryobjectiveoftheadministrationofjusticeistosafeguardthepublicinterestinopenjustice”
- S7andS8setoutthepowerstograntorders
RighttoProceduralFairness
- Justicedelayedisjusticedenied(i.e.delayandcostpreventjustice)soefficiencyiscrucialtojustice
Vs
- Therighttoproceduralfairness:areasonableopportunitytobeheard- Audialterampartem:Heartheotherside
CivilProcedureActNSW2005s56(overridingpurpose)
- 1)…overridingpurposeoftheAct…istofacilitatethejust,quickandcheapresolutionoftherealissuesintheproceedings
- 2)Thecourtmustseektogiveeffecttotheoverridingpurposewhenitexercisesanypower…andwhenitinterpretsanyprovisionsofthisAct
- 3)Partytocivilproceedingsisunderaduty…- 4)Asolicitororbarristermust…- 5)Thecourtmaytakeintoaccountanyfailure…withrespecttocosts
ProceduralvsSubstantiveJustice
- thebestprocedureisthefastestandcheapestbutthisriskssubstantiveinjustice
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- theclosestthingtothe“rightanswer”(substantivejustice)maybeprocedurallyunfairasitislikelytobeexpensiveandslow
- Iftheprocesstakestoolongitbecomesprocedurallyunjust
TheBalancingAct
- Speedydispositionofcases
VS
- IndividualJustice
Judgesfeeltheneedforspeed
- “Makingjusticefastandaffordableaswellasfairisadilemmathathasgrownmoreacute,inaworldofcomplexfinancialengineering,increasinglysophisticatedcriminalsyndicates,internetscamsandtechnologicalchange”
o ElisabethSexton,DeborahSnow,JoelGibsonandGeescheJacobsen:SydneyMorningHerald19October2010
CaseStudyNABvMcCann[2010]NSWSC766
- Amendmentofpleadingscase- FollowsAONvANU(2009)- Casemanagementleadstostrikeoutofdefence- Defaultjudgmentforplaintiffnotsetaside- Nohearingonthemerits- Wasdefendantdeniedrighttoafairhearing?
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TheDefendant’sViewpoint
- Forcedtodefendproceedingstoretainhome- Particularsofclaimnotprovided- Defencesstruckout- Lawyersfoundtobeincompetent- Probonoassistancedenied- Foundtohavefailedtoprovidesatisfactoryevidence- Defaultjudgmentagainsthersustained
ThePlaintiff’sViewpoint(NAB)
- Foreclosureonbadloansecuredbymortgage- PossessionnotgrantedtoNAB- Serviceavoidedrequiringsubstitutedservice- Claimpoorlydefended- Severaldefencesstruckout- 3applicationstosetasidedefaultjudgementdefendedbyNAB- 2years’delayinregainingloanfunds
TheCourt’sViewpoint
- Needtograntsubstitutedservice- Unrepresenteddefendantrequiringspecialassistanceincluding
reviseddefences- Incompetentlawyersfordefendant- Numerousinterlocutoryappearances- Judgementcarefullywrittentoassistpartiestohelpjudgegivejustice- Futilewasteofcourttimeforsameresult
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LAWS398WEEK7CivilProcedure:LitigationSteps,AlternativeDisputeResolution,LimitationPeriods
CommonStepsIncludingADR
- 1.ADR:InformalNegotiation
o Beforecommencinglitigationmostpartiesengageinsomesortofnegotiation
- 2.CommenceLitigation
o Ifnegotiationsfail,partiesmaycommencelitigationbystatementofclaim
- 3.ADR:InformalNegotiations
o Evenaftercommencingproceedings,manypartieswillcontinuetryingtosettle
- 4.Pleadingsfiledandserved
o Atthisstagebothpartiesshouldknowwhatisindispute- 5.ADR:Negotiation/Mediation
o Itiscommonforcourtstoordermediationatthispointand/orforpartiestoorganiseitinformally.Thisisalsoagoodtimeforfurthernegotiation
- 6.Evidenceprepared.
o Oncethediscoveryandwitnessevidencearecomplete,thematterisessentiallyreadyforhearing
- 7.ADR:Settlement,negotiations,mediationandarbitration:
o Areallpossibleatthisstageo Bothcourtorderedandadhoco ADCcanoccuranytimefromhereincludinguntilthelitigation
hearingiscomplete
TypicalLitigationSteps
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- 1.Disputearises- 2.Partiesareunabletoresolvebynegotiation- 3.Letterofdemand/threatoflitigationissent- 4.PlaintifffilesStatementofClaimincourt- 5.StatementofClaimisservedonDefendant- 6.Defendantentersappearance- 7.Directionshearing(timetabletotrialset)- 8.Defendantrequestsfurtherparticulars- 9.Plaintiffprovidesfurtherparticulars- 10.DefendantfilesStatementofDefence- 11.Possiblefurther:
o Particularso AmendedStatementofClaimo CrossClaimso Interlocutorymotionsonpleadings
- 12.PleadingsClose- 13.Partiesundertakediscovery- 14.Partiesservelistsofdiscovereddocuments- 15.Interlocutorymotionsre:discoveryandprivilege- 16.3rdpartiessubpoenaedfordocuments
o Thiscanoccurearlierand/orlaterandcanoccurseveraltimes- 17. Plaintiff prepares and serves witness evidence including expert
reports- 18.Defendantpreparesandserveswitnessevidenceinreplyincluding
expertreports- 19.Plaintiffpreparesandservesevidenceinreply- 20.Mattersetdownfortrial- 21.Trialpreparation(e.g.witnessessubpoenaed)- 22.Trial- 23.Judgment
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CaveattoLitigationSteps
- The litigation steps above are indicative of a complex litigation in ahighercourt
- Litigationprocessvariessignificantlydependingon:o TheCourto Thejudgeo Thepartieso Thenatureandcomplexityofthedisputeo Thenatureandcomplexityoftheremedysoughto Theissuesindisputeo Whetherthedisputeisprimarilyfactual,legaloramixture
- Litigationischangingo E.g.moreonlineprocessesandamoveawayfromdiscovery
AlternativeDisputeResolution
- AlternativetoLitigationinCourt:o Negotiationo Mediationo Conciliationo Arbitration
ADR
- Definitiono AlternativeDisputeResolutionorAppropriateDisputeResolution
- InteractionbetweenLitigationandADRincluding:o Settlementoflitigationo CourtorderedADRo Pre-litigationprotocols
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- BenefitsandDisadvantagesofADR- TypesandExamplesofADR:
o Negotiationo Mediationo ConciliationArbitrationo Refereeso CollaborativeLaw
- AffectofADRonCivilProcedureThemes
DefinitionofADR
- AlternativeDisputeResolutionor“AppropriateDR”or“AdditionalDR”- Processes, other than judicial determination, in which an impartial
personassiststhoseindisputetoresolvetheissuesbetweenthemo National Alternative Dispute Resolution Advisory Council
(“NADRAC”)
- NB NADRAC definition encompasses formal ADR not informalnegotiation
RelationofLitigationtoADR
- Majorityofdisputes resolved throughnegotiationorothermeansofADR
- Evenwherelegalproceedingscommended,90%+settlebeforetrial- Courts may refer litigation to mediation, arbitration, expert
determinationorreferees- LegislationmayrequireADRpriortocommencinglitigation- OptiontolitigateinformsADRprocess- Settlementoffersinfluencelegalcostsordersinlitigation
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SettlementCorrespondence
- Even where formal ADR used, e.g. mediation, written offers arecommonunlessfinalisedinADR- 1.Offerstocompromise
o UnderUCPR:rr20.26,42.13–42.17- 2.Calderbankletters
o Withoutprejudicesaveastocosts-CommonLaw- Offermaybefromeitherside- Therearecostsconsequencesofofferifmatterdoesn'tsettle- For indemnity costs:mustbegenuineofferof compromise;mustbe
unreasonableforoffereetohavedeclined- ‘Walkaway’offercanbeagenuineoffer
o LeichardtMCvGreen[2004]NSWCCA341
Example1:
- Plaintiffservesofferofcompromiseon4/1/16for$1millionpluscostsasagreedorassessed
- Defendantrejectsoffer- Judgemententeredfor$2millionon22/3/16- Whattypeofcostorderwilltheplaintiffapplyfor?
Solution
- 1. Costs up until date of offer areworked out on usual bases (costsfollowevent:r42.1)
- 2.Butofferor(pl)willseekindemnitycostsfromdateofofferonwards(rr42.14–42.15A)
o Rationale§ Offerwasbetterthanwhatoffereewasentitledto§ Offeree(def)shouldhaveaccepted$1millionoffer§ Incentivetoacceptreasonableoffers
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Example2
- Defendantservesofferofcompromiseon4/1/16for$1millionpluswillpayplaintiff’scostsasagreedorassessed
- Plaintiffrejectstheoffer- Judgmententeredfor$500000on22/3/16- Whattypeofcostorderwillthedefendantapplyfor?
Solution
- Defendantwillapplyforplaintifftopaydefendant’scostsonindemnitycostsfromthedateofofferastheplaintiffshouldhaveacceptedthe$1Million
- Defendantwillpaytheplaintiff’scostsonordinarybasisuptothatdateas theplaintiffwas successful on claimand so itwas reasonable forplaintifftorunclaimupuntilplaintifffailedtoacceptoffer
Caveatre:SettlementandCosts
HoltvTCNChannelNineP/L(No2)[2012]NSWSC968
- Factsofthecase
o Defamationcaseo Plaintiffofferedtosettlefor$95Kanddefendantdidn'tacceptor
makeanyoffero ThePlaintiffwonbutonlyfor$4900o Further, defendant had reasonable prospects of truth defence
although ultimately unsuccessful on several counts; the courtfoundplaintifftobestrategicliar,assaultedhiswifeandtookhermoney
- Held
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o Defendanttopayhalfofplaintiff’scosts.Thiswasdespitespecialobligationsindefamationcasestoreachsettlement
o “Idonotconsiderittobeincumbentonadefendantpublisherinthatpositiontomakeasettlementofferorsufferacostspenaltymerelyonthebasisthatitmusthavecontemplatedthepossibilityoflosingtheproceedings”
- Sothecaveatisthatthecourtsdon'talwayshavetofollowthe“rules”
abouttheimpactofsettlementoncosts
EdwardsvEndeavourEnergy[andotherproceedings](No.5)[2014]NSWSC
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- “11.CostsareinthediscretionoftheCourtandtheCourthasfullpowertodeterminebywhom,towhomandtowhatextentcostsaretobepaid:s.98(1)CivilProcedureAct2005.
o CostsshouldfollowtheeventunlessitappearstotheCourtthatsomeordershouldbemadeastothewholeoranypartofthecosts:Rule42.1UniformCivilProcedureRules2005
- “13.TheexerciseoftheCourt’sdiscretionastocostsultimatelyrequiresanassessmentofwhatisfairinallthecircumstances:
o McLaughlin v Dungowan Manly Pty Ltd [2010] NSWSC 306 at[22]”
ADRandIndigenousCommunities
- WesternstyleADRisnotnecessarilyabettersolutionthanthecourts- AboriginalsandTSIcommunities“shouldbeabletoimplementmodels
in theirowncommunities,whichrecognisetraditionalculturalvaluesandtraditionalstructuresofdecisionmaking”
o Larrisa Behrendt: Aboriginal Dispute Resolution (1995)
FederationPress
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ReasonsforGrowthofADR
- Difficulties ‘accessing justice’ through adversarial litigation and theLitigationDeterrents(emotional,timeandmoneycosts)
o E.g.Fearofadversecostso Inacomplexlitigation,costscaneasilyoutstripthevalueofthe
dispute.§ It is not uncommon for costs to be in the $millions for
complexcommerciallitigationandcostsusuallyfollowthecausemeaningthattheloserpaystheotherside’scostsaswellastheirown.
§ Thecostspayablepursuanttoanorderofcostsinthecauseareusuallyparty/partycostswhichareonlyabout60-70%usuallyofactualcosts.
§ Thismeans that even thewinning sidewill likely end upsignificantlyoutofpocket.
§ Also, significant time cost for individuals or corporatepersonnel in locating documentary evidence and givingwitnessevidence(oftenincludingseniorpersonnel),stressforthoseinvolvedinthelitigation.�
- Desirability of addressing broader (non-legal) interests and needs ofpartiesincludingthedesiretopreserve‘relationships’
o Adverseeffectsofadversarialprocessinclude:§ Destructionofrelationshipswithopposingparties§ Adversepublicity(whichcandamagerelationshipswiththe
public)o Amediationorsimilarcanresultinawin/winresultwhereasat
leastonepartylosesinlitigation. § E.g.adisputeastoafaultydeliverymayberesolvedbyan
agreementastoanewlargershipmentatareducedcostwhichmayactuallybeagoodresultforbothparties.
§ E.g.Divorcedparentsaremorelikelytomeetbestinterestsof themselves and children if they can agree informal,flexiblecustodyratherthanrelyingonarigidCourtorder.�
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AdvantagesofADR
- PartieshaveIncreasedControlo Controloverprocesso Controloveroutcomeo Controlovercostso Controloverparticipationo Controloverdelayo Choiceoverindependentdecisionmaker/assistant
- RelationshipscanRemainIntacto Compromiseratherthanwin/loseo Moreco-operative/less‘adversarial’
- Reputationscanbeprotectedo Confidential
AdvantagesofADR:Optionforwin/winoutcome
- ADR approaches can be “interest based” rather than “positional”leadingtopossiblewin/winsolutionsinsteadofwin/loseorlose/lose
- BATNAo Besto Alternativeo Too Negotiatedo Agreement
§ Informs positional negotiation but is not the basis forsettlement
DisadvantagesofADR
- Notsuitableforsomecaseso E.g.testcases
- Lackofproceduralprotection
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o Reasonso Evidenceo Appeals
- Lackofenforceability- Lessaccesstootherside’sinformation- Mayincreasecost,ifunsuccessful- Mayaddtodelay
o Beusedtactically- Noprocedural‘fairness’
CircumstancesinwhichpartiesundertakeADR
- VoluntarytoInvoluntary
o Adhoc:§ Before commencing proceedings, during preparation for
trial,duringtrialo Contractual
§ Beforecommencingproceedingso CourtOrdered
§ Duringpreparationfortrial§ Duringtrial§ Aspartoftrial
o Legislativelyrequired§ Beforecommencingproceedings
ADRandCaseManagement
- ADRcanbepartoflitigationCMprocess- ReferraltoADR
o Initiallyoutsidethecourtsystemnowintegrated intothecourtsystem
- Courtcanrefertomediationwithoutconsent
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- Courtcanrefertoarbitrationorreferees- Pre-litigationprotocolsalsopotentiallyCM
TypesofADR(NADRAC)
- 1.FacilitativeProcesseso Mediation
o Conciliationo Ombudsmen
- 2.DeterminativeProcesseso (ENFORCEABLE)
§ Adjudication§ Arbitration
§ Expertdetermination§ Privatejudging
o (NOTENFORCEABLE)§ Fact-finding§ Earlyneutralevaluation
- 3.Advisoryo Expertappraisalo Caseappraisalo Casepresentationo Minitrialo Earlyneutralevaluationo Collaboration
- 4.Hybrido Combination
§ E.g.mediationandarbitration