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5.10 Termination of alternative dispute resolution

The termination of Alternative Dispute Resolution (ADR) refers to the conclusion of the ADR process before a resolution is reached. Termination can occur for various reasons and may involve different consequences depending on the stage of the ADR proceedings. Here are some common scenarios and considerations regarding the termination of ADR:

1. Voluntary Termination:

  • Parties may mutually agree to terminate the ADR process at any stage if they believe that continuing the process is not productive or beneficial.
  • Voluntary termination may occur if parties decide to pursue other dispute resolution methods or if they reach a resolution independently.

2. Impasse or Stalemate:

  • Termination may occur when parties are unable to reach an agreement or overcome an impasse during mediation or negotiation.
  • In such cases, parties may choose to end the ADR process and explore other options, including litigation.

3. Unresolved Disputes:

  • If parties are unable to reach a resolution through mediation or arbitration, the ADR process may be terminated without a final outcome.

4. Non-Compliance:

  • Termination may occur if one party fails to comply with the agreed-upon ADR procedures or breaches the terms of the ADR agreement.

5. Unavailability of Mediator or Arbitrator:

  • If the selected mediator or arbitrator becomes unavailable or unable to continue the process, the ADR proceedings may be terminated.

6. Withdrawal of Consent:

  • A party may choose to withdraw its consent to participate in ADR, leading to the termination of the process.

7. Failure to Pay Fees:

  • If parties fail to pay required ADR fees or expenses, the ADR provider or practitioner may terminate the process.

8. Completion of Process:

  • Termination occurs when the ADR process is completed, and a resolution or decision has been reached. The process ends with the issuance of an award in arbitration or the signing of a settlement agreement in mediation.

Consequences of Termination:

  • The consequences of termination can vary depending on the specific circumstances and the stage of the ADR process:
    • Termination before resolution may lead parties to explore other options for dispute resolution, such as litigation.
    • Termination after reaching an agreement or receiving an award may result in the enforcement of the agreed-upon terms or award, depending on the enforceability provisions in the ADR agreement.
    • Termination due to non-compliance or other breaches may lead to legal consequences, including potential claims for damages or specific performance.