Hybrid dispute resolution - a combination of two or more dispute resolution processes tailored to the users’ needs - has emerged as a more flexible and efficient alternative to traditional or standalone mechanisms.
To understand this trend better, we take a deeper look at the benefits of a hybrid dispute resolution and the key considerations when choosing this mechanism.
Hybrid dispute resolution allows user to combining the benefits of various dispute mechanisms according to their needs.
Contractual obligations
Efficiency, cost and speed
Enforceability and finality
Preservation of business relationships
While the flexibility and customisable nature of hybrid dispute resolution is advantageous, users may not know where to get started. Here are some key considerations to navigate the flexibility of the dispute resolution process:
An amicable resolution is not always possible. Hence, the need for multi-tiered hybrid approaches arises. The COVID-19 pandemic has led to an increase in backlog court cases. Hybrid dispute resolutions may emerge increasingly as an approach to address this.
Third Party Funding (TPF), a form of financing for legal cases, can alleviate the concerns by companies seeking redressal for wrongs caused by others. We believe that the rapidly evolving TPF should be considered in deciding on a dispute resolution strategy.
In recent years, Legal Technology (LegalTech) has grown in sophistication and brought many benefits to stakeholders in the Dispute Resolution space. Services such as electronic filing systems and case management software have made processes more efficient and less menial.
With focus on continuity and minimising losses, organisations prefer a dispute resolution strategy that is not only efficient but also cost-effective and aligned to the commercial interests of the parties to dispute.
