An overview of our processes

NZDRC offers a number of dispute resolution processes to resolve your dispute.

Arbitration

Arbitration is a formal dispute resolution process where two or more parties agree to submit all or certain disputes between them to an independent person called an arbitrator. Arbitration is entered into by agreement and the process is governed by the Arbitration Act 1996 and the Arbitration Amendment Act 2007.

An arbitrator’s decision, called an award, is binding on the parties and is enforceable as a judgment of the Court.

Mediation

Mediation is a consensual, confidential, and relatively informal negotiation process in which parties to a dispute use the services of a skilled and independent third party called a mediator to assist them to define the issues in dispute, to develop and explore settlement options, to assess the implications of settlement options and to negotiate a mutually acceptable settlement of that dispute which meets their interests and needs.

Generally, any agreement reached will be recorded in writing and will be binding on the parties. Any party to such an agreement may enforce its terms by issuing court proceedings.

Mediation has the advantage of assisting in repairing and/or preserving business relationships where adversarial proceedings may not. Mediation is a particularly effective process in circumstances where there needs to be an ongoing relationship between the parties.

Arb-med

Arb-Med is a hybrid dispute resolution process that combines the benefits of arbitration and mediation, including: speed, procedural flexibility, confidentiality, choice of decision maker, ease of access to the tribunal, continuity, finality, and enforceability of the outcome.

The primary objective of Arb-Med is the informed good faith negotiation and settlement of the dispute by the parties, with the initial assistance and efficiency of the Arbitral Tribunal’s information gathering powers, in the context of a formal arbitration process that will immediately resume if the mediation that follows is not successful.

Adjudication

Adjudication provides parties to a dispute with a cost-effective but robust dispute resolution process that results in a determination being made by an independent adjudicator, typically within 35 working days.

Contractual Adjudication offers a proportionate and fast-track dispute resolution process with the primary purpose of improving cashflow, whilst providing quick and relatively inexpensive access to justice, alleviating pressure on the Courts.

Expert determination

Expert determination is a simple means of binding dispute resolution. Expert determination is a consensual, confidential and relatively informal process whereby parties to a contract agree to refer matters in dispute to an independent person to decide. The independent person is selected because the person is respected as having expertise relevant to the matters in dispute between the parties.

Expert Determination can provide either a binding or non-binding determination (subject to agreement by the parties) without involving many of the formalities that can beset more formal processes such as arbitration and litigation.

A determination which the parties have agreed shall be binding on them may be enforced by a party to the process issuing court proceedings.

Expert determination also has the advantage of assisting in preserving business relationships where strictly adversarial proceedings may not.

Early neutral evaluation​

Early Neutral Evaluation is a confidential, settlement oriented dispute resolution process that produces a non-binding evaluation of the facts, evidence and legal merits of a case by an independent neutral third party.

The objective of Early Neutral Evaluation is to position the case for early resolution by settlement or trial by providing the parties with guidance as to the likely outcome if the dispute were to be heard by a court in the form of an independent Evaluation of the facts, evidence, and legal merits of the matters in dispute.

Although settlement is not the primary objective, the purpose of Early Neutral Evaluation is to promote settlement discussions at an early stage in the litigation process, or at the very least to assist parties to avoid the significant time and expense associated with further steps in litigation.

Conflict management

Conflict management services include organisational performance audits, conflict management coaching, the development and implementation of integrated conflict management systems and strategies to improve performance and relationships to avoid disputes between employees, clients, suppliers, subcontractors and other stakeholders, and where conflict and disputes cannot be avoided, to manage disputes effectively.

Related conflict management resources

Other resources you might like

If you found this article helpful and are interested in learning more, there is a wealth of other resources available on our website. We have a wide array of articles and guides on a variety of topics, each designed to provide you with a deeper understanding of the subject matter. We encourage you to explore these resources and deepen your knowledge.

A man with glasses is sitting at a wooden table, looking surprised while peering at a laptop screen. He is lifting his glasses slightly off his face, eyes wide open, and the background is plain white.

It pays to check: US$54 million error a “simple” mistake

We all make mistakes – it’s human nature. However, some mistakes have bigger consequences and a London Court of International Arbitration (LCIA) panel recently had a US$54 million howler! When calculating the value of shares in assessing damages in a Russian commercial dispute, the tribunal of three arbitrators added a sum relating to historic tax labilities instead of subtracting it.

When the US$54 million error was brought to its attention, the tribunal sincerely apologised but refused to amend the award on the grounds it was a “fair assessment” of loss. Needless to say, the claimants weren’t happy. They asked the tribunal to correct the error. The tribunal refused. The claimants then filed a challenge to the award in the English High Court on the grounds that the mistake was a “serious irregularity”, causing “substantial injustice”, and the damages should be reduced to US$4 million. [1]

The challenge was heard by Sir Ross Cranston, who described how “a tribunal of leading arbitrators” made a “simple mistake” when assessing the damages. Sir Ross said it was “the sort of mistake any of us can make” but “with the most unfortunate of consequences”. The challenge was successful. The High Court remitted the award back to the tribunal for reconsideration.

GROCERY INDUSTRY DISPUTE RESOLUTION SCHEME DELIVERED BY THE NEW ZEALAND DISPUTE RESOLUTION CENTRE GOES LIVE 

Minister Andrew Bayly, the Minister of Commerce and Consumer Affairs, announced yesterday that he has approved the rules of the Grocery Industry Dispute Resolution Scheme. The scheme is now in force. The New Zealand Dispute Resolution Centre (NZDRC) is proud to have been selected to provide this scheme for the grocery industry, and to now have it available for use.
A bronze statue of Lady Justice is shown, featuring a blindfolded woman holding balanced scales in her right hand. The figure symbolizes impartiality and fairness in the judicial system. The background is blurred, drawing focus to the detailed sculpture.

Urgent interim relief

In many instances, speedy dispute resolution will be of utmost importance for parties. If a dispute is not resolved promptly it may threaten a party’s solvency or ability to conduct ‘business as usual’.

In response to this need, a number of overseas arbitral institutions have introduced the concept of an ‘emergency arbitrator’. Under those procedures, at the request of a party an emergency arbitrator is appointed to determine applications for urgent interim relief before the arbitral tribunal is constituted. Once the application is dealt with, the ‘emergency arbitrator becomes functus.

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