Using CADR services will achieve significant savings in comparison with the potential spend which is required to complete a detailed assessment of costs and has the potential to run into tens of thousands of pounds in legal costs on top of the court fee of up to £6,160.
In addition, resolving a costs dispute through ADR brings certainty and closure. There is no appeal whereas by going to court, there is uncertainty, unpredictability and the prospect of an appeal if one side (or both sides) are dissatisfied with the outcome.
By comparison in this context:
With ADR, the parties are in control of the costs and of their own destiny at all times. In the courts, they are not. A judge’s decision, whether right or wrong, is final and binding on the parties (subject to any appeal).
Court outcomes are unpredictable because they are subject to the Civil Procedure Rules (CPR) 36, the “proportionality test” under CPR 44.3(5) and the vagaries of costs budgeting. A CADR conducted ADR process has no such uncertainties.
The Court conducts its business in public and the proceedings are tape recorded: ADR is in private and is fully confidential with no recordings made.
At court, the judge is allocated by the Court Service with the parties having no say in that selection : with ADR, the CADR expert is chosen by the parties.
The courts allocate their own hearing dates with a wait of at least a six months (usually more) for an assessment hearing. With a CADR run ADR, the parties choose the date and have a guaranteed time by which any written outcome will be provided.
Resolving a dispute by ADR means that costs due to a party are paid much earlier than by assessment thereby improving cash flow, and for a party paying costs, such a payment halts interest accruing at the statutory rate of 8 per cent on the outstanding costs.
