On 16 November 2010 a new rule of the Superior Courts came into force which provides that a Court can now adjourn legal proceedings to allow parties engage in an Alternative Dispute Resolution (ADR) process.

An ADR process is defined as “mediation, conciliation or other dispute resolution process approved by the Court not including arbitration”.  

Under the new Court rules any party involved in High Court proceedings can request an adjournment of the proceedings to enable the parties to use ADR to settle or determine the dispute. Alternatively when it considers it appropriate to do so, the Court may itself order the adjournment of proceedings and invite the parties to use an ADR process.

Where parties engage in an ADR process the Court may extend the time for compliance by any party with the provisions of the Court’s rules or any pre-existing Court order(s) and may make such further directions or orders as it thinks appropriate to facilitate the effective use of ADR.   

From a timescale perspective, unless there are special reasons allowed by the Court, an application for ADR must be made no later than 28 days before the date on which the proceedings are first due to be heard.

Any party to High Court proceedings where an ADR process is proposed either by another party to the proceedings, or by the Court itself, should carefully consider any such request as it may be possible for a party who fails, or refuses without good reason, to participate in an ADR process to be sanctioned with a costs order.