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.
Efficiency, cost and speed common factors for choice of hybrid dispute resolution
- Efficiency, cost and speed feature in the top five factors influencing users’ choice of hybrid dispute resolution over arbitration or mediation.
- Users’ response reflects that a hybrid mechanism would provide better preservation of business relationship over arbitration.
- Users favour a hybrid mechanism over mediation due to its enforceability and finality.
Benefits of hybrid dispute resolution
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
Hybrid dispute resolution in practice
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:
- Set upfront the tiering order in the hybrid mechanism
- Identify levels of details in the contract
- Set a time frame
- Avoid appointing the same neutral person as the mediator and arbitrator
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.
