Report: government settling 72% of cases through alternative dispute resolution initiatives


The government's latest report into its use of alternative dispute resolution (ADR) shows it is using the process in more cases, and it believes it is saving more money every year.



But settlement rates are also falling year on year since the then Lord Chancellor, Lord Irvine, announced a 'pledge' in March 2001 to use ADR whenever possible.



Overall the use of ADR by government departments has risen, from just 49 cases in the first year of the pledge to 336 in 2005/06.



The report claims that self-assessed savings made by using ADR have also risen dramatically, up from £29 million in 2004/05 to £121 million in 2005/06. However, the government admits the latest figure is significantly inflated by two 'exceptionally large' cases - one £50 million claim relating to customs enforcement action was eventually settled for £1.8 million.



The report also revealed settlement rates have consistently fallen year on year since an initial 89% in 2002/03. The rate fell to 79% in 2003/04, 75% in 2004/05 and was down to 72% in this latest report.



Andy Grossman, director of the Centre for Effective Dispute Resolution's (CEDR) Solve dispute resolution service, said he found it encouraging that the government is increasingly using ADR, and insisted that the settlement rates represent a fall to normal levels.



He said: 'This latest report clearly shows the government has seen an increase in the number of cases where ADR has been used, and we find it encouraging that departments and agencies are not only increasing awareness of ADR among lawyers but also internal clients involved in procurement and claims handling.'



But, Mr Grossman said, 'broad settlement statistics always need to be approached with some caution, as they do not take into account factors such as the type and complexity of the case or the ability of ADR to develop better dispute resolution skills within an organisation'.



The government's settlement rate of around 75% is consistent with CEDR's own case settlement figures, he added. However, if the downward trend continues, settlement rates will fall below 70% in 2007/08.



Government ADR initiatives launched in 2005/06 included a Ministry of Defence mediation process for resolving employment disputes for both civilians and members of the armed forces and a workplace mediation scheme at the Department for Constitutional Affairs.



Rupert White