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Alternative Dispute Resolution
Many consumers believe that when they have exhausted all attempts to resolve a complaint that the only way forward is to take the matter to court. Well this is not exactly true. There is another option Alternative Dispute Resolution (ADR). ADR schemes or an out-of-court mechanism involves an organisation which aims to solve disputes without going to court. The process involves the use of a third party such as an arbitrator or a mediator to help disputing parties reach a resolution.
ADR bodies range from ombudsmen or regulators, an example of the type of ADR schemes available here in Ireland is the Financial Services Ombudsman, the Pensions Ombudsman or the Advertising Standards Authority for Ireland. These ADR schemes are very important for consumers when shopping at home or cross-border as they give consumers access to redress should a problem arise.
- Alternative Dispute Resolution (ADR): an overview
- ADR or the Small Claims Court?
- What ADR Bodies are available in Ireland?
- ADR and the European Union.
The most commonly used dispute resolution processes offered by ADR Bodies or Organisations are Mediation and Arbitration. ADR is often less formal and adversarial than a court trial, it's also faster and cheaper. Any individual or business can use an ADR procedure without having to hire costly solicitors.
Mediation
Mediation is based on the principle that people can resolve their own disagreements if given the right support. A mediator does not judge who is right or who is wrong, but works with parties to help them arrive at a solution to satisfy their interests.
Mediation usually provides a quicker, more cost effective and more satisfactory outcome than legal litigation. It may take months and sometimes years to resolve a disagreement in court, mediation can be paced according to the parties' needs and schedule. Mediation is voluntary and requires both parties agreement to the make a final resolution. In mediation, the parties are able to customise the resolution agreement to meet their needs rather than being constrained by the limited options available in court. Most important, parties are more likely to preserve an amicable relationship in the future.
Arbitration
Arbitration is a voluntary alternative dispute resolution process. Unlike mediation, a knowledgeable, independent, and impartial third party is empowered to make a decision. The arbitrator hears the disagreement between one or more parties and after considering all relevant information renders a final decision in favour of one of the parties. Arbitration decisions may be either binding or non-binding, depending on the terms of the arbitration agreement. Binding arbitration decisions may be confirmed by a court and carry the same significance as a court judgment.
For information purposes, it should be noted that there are, however, other forms of ADR, including early neutral evaluation, moderated settlement conferences, focus groups, summary jury trials, mini-trials, and direct negotiation.
As a consumer you have access to a range of ADR Bodies who will handle a dispute on your behalf. Before you decide to take a case through ADR or the Small Claims Court you should consider the following:
- What is the value of your claim?
- If a claim is over €2000 a consumer will need to take their case through the District Court and may need legal representation.
- ADR procedures can deal with any value of dispute.
- What are the costs involved in pursuing your case?
- The Small Claim Procedure will only cost €15.00.
- Many of the ADR Bodies offer their service free of charge.
- Do you have the time to attend a Court hearing?
- If you wish to take an action through the Small Claims Court you will be required to attend the hearing in person, if the matter is not settled beforehand.
- Most ADR procedures do not require an oral hearing and disputes can be dealt with through distance communication, meaning you do not have to leave the comfort of your own home.
- Will the outcome of the action be enforceable?
- All judgements by the Small Claims Court are enforceable.
- ADR decisions may be either binding or non-binding, depending on the terms of the ADR agreement. Many of the ADR Bodies operating here in Ireland decisions are binding.
In Ireland there are two types of ADR Bodies, Public ADR bodies and those that are set up privately by specific industries.
Public ADR Schemes
Commission for Aviation Regulation
National Enforcement Body of Regulation (EC) 261/2004 relating to air passengers effected by delays, cancellations and denied boarding. www.aviationreg.ie
Commission for Energy Regulation
Regulates the electricity and gas markets.
www.cer.ie
Commission for Communications Regulation (ComReg)
Regulator for the electronic communications (telecommunications, radio communications and broadcasting) and postal sectors.
www.askcomreg.ie
Financial Services Ombudsman's Bureau of Ireland
Handles unresolved complaints from consumers about their dealings with financial service providers.
www.financialombudsman.ie
Pensions Ombudsman
Investigates and rules on complaints and disputes involving occupational pension schemes and Personal Retirement Savings Accounts (PRSAs).
www.pensionsombudsman.ie
Private Residential Tenancies Board
Registers tenancies and mediates disputes between landlords and tenants.
www.prtb.ie
Taxi Regulator
Regulates taxis, hackneys and limousines.
www.taxiregulator.ie
Private ADR Schemes
Advertising Standards Authority
Investigates complaints about advertisements. This body was set up and is financed by the advertising industry. If you are complaining as an individual or as a group of consumers, your identity remains confidential.
www.asai.ie
Chartered Institute of Arbitrator
Scheme for Tour Operators
Scheme for the society of Irish Motor Industry Scheme (SIMI)
www.arbitration.ie
Direct Selling Association Ireland
Direct Selling is the marketing of consumer goods or services on a person-to-person basis - either where a product is demonstrated in the home or a catalogue is left with the customer. Consumers can submit a complaint to DSAI against one of its members.
www.dsai.ie
Car Rental Council of Ireland
Investigates complaints against its members
www.carrentalcouncil.ie
Mediation Forum Ireland (MFI)
Provides a service for the resolution of conflict and disputes, through its referral service, parties can draw upon their network of over 100 independent Mediators.
www.mediationforumireland.com
ECODIR - Electronic Consumer Dispute Resolution
Helps consumers and businesses prevent or resolve their complaints and disputes online using a quick, efficient and affordable service.
www.ecodir.org
The European Single Market has opened up many opportunities for consumers to avail of goods and services from any EU Member State. As a consumer it is of paramount importance that you feel confident when shopping in Ireland or any other EU Member State. Development and promotion of ADR at National level is critical in order to provide fair and efficient dispute-resolution mechanisms at European Union level.
In order to facilitate the resolution of consumer complaints the European Commission has encouraged, through two Recommendations, the development of ADR schemes in each Member State. Each Recommendation contains a set of Principles which an ADR Body agrees to adhere to. Both recommendations ensure that ADR Bodies offer all parties involved minimum quality guarantees.
Recommendation 98/257/EC - Relates to Arbitration procedures
Recommendation 2001/310/EC - Relates to Mediation procedure
Once a Member State ensures that an ADR Body satisfies each of the principles of either of the Commissions Recommendations, their details will then be submitted to European Commission and placed on a Central database.
If you would like to find out which Irish ADR Bodies are listed then visit European Commissions Web Site. ec.europa.eu/consumers/redress_cons/adr_en.htm#coop
Whether you decide to purchase a product or service in Ireland or in another Member State, always check to see if the company offers an ADR scheme for its consumers. Also check and see if this ADR Body is listed on the EU Database. This will allow you to be confident that, in the event a problem, it will be resolved without you having to leave the comfort of your own home. Don't just shop around for the best price but look for a company who offers a quality after sales service.
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