Embedding alternative dispute resolution in the civil justice system: a taxonomy for ADR referrals and a digital pathway to increase the uptake of ADR

Abstract This paper examines in three parts how ADR is being embedded into the English civil justice system. Section 1 discusses how courts encourage settlements, and it argues that while mounting costs in litigation lead to negotiated settlements, the participation in ADR primarily mainly occurs when parties are referred to it in a timely manner. Section 2 investigates the time when disputants are referred to ADR, and it proposes a taxonomy formed by three stages in the dispute life cycle: (1) before parties contemplate litigation; (2) at the pre-action phase as a pre-condition to issue a claim; and (3) after a defence is entered. Section 3 notes that the court digitalisation program is increasing ADR referrals across the above three stages, and it argues that these referrals will be more effective when they are timely and coupled with suitable incentives and sanctions, but the latter must take into consideration the parties’ power asymmetries.