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ADR clause/notice meaning

What does ADR clause/notice mean?
In practice, an adr clause is a contractual provision requiring or encouraging parties to use alternative dispute resolution (for example negotiation, mediation, conciliation, expert determination, early neutral evaluation or statutory adjudication) before commencing court proceedings. An ADR notice is the written notice by which a party invokes that mechanism. The expression is descriptive rather than statutory. Individual processes are governed by their own legislation, rules or institutional procedures, but there is no general statutory definition of ADR clause/notice. Typical features include a tiered dispute resolution pathway; the scope of disputes covered; how a neutral is appointed; timetables; cost allocation; and confidentiality/without prejudice provisions. An ADR notice should comply with the contract’s notice and service provisions and usually identify the dispute, relief sought, proposed ADR process and timetable. Across England & Wales, Scotland, Northern Ireland and Ireland, courts generally uphold sufficiently certain ADR clauses. They may stay or sist proceedings and can impose costs/expenses consequences for an unreasonable refusal to engage in ADR. Pre-action regimes encourage ADR (for example, the CPR in England & Wales; court rules in Scotland and Northern Ireland; and, in Ireland, the Mediation Act 2017 influences costs). Even without a clause, a party may invite ADR by serving an...
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View the related Checklists about ADR clause/notice

CHECKLISTS
Civil Settlement Agreements: Negotiation, Drafting, ADR, Part 36, 'Without Prejudice' and 'Subject to Contract', Tomlin Orders, Deeds and Third-Party Rights—Checklist (England and Wales)

When to seek settlement? This checklist flags common issues that can emerge when negotiating and drafting a settlement agreement. For step-by-step guidance on negotiating and preparing a settlement agreement, consult the following Practice Notes: How to agree and draft a settlement agreement (non-employment claims) Settling disputes—how to document a settlement Settling disputes—drafting the settlement agreement Keep settlement in mind at every stage of a dispute, including pre-action. Consider the full range of resolution routes, such as direct negotiation between the parties or their legal advisers, assessing whether a Part 36 offer is suitable, or engaging in assisted alternative dispute resolution (ADR), for example mediation. Following a rule change in October 2024, the court may now order parties to participate in ADR (see CPR 3.1(2)(o)). Review any contractual duties relating to settlement—such as a tiered dispute resolution clause—and ensure compliance with pre-action protocol requirements that encourage and facilitate settlement efforts. For additional context, see: Settling disputes—what, when and why settle?...

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View the related News about ADR clause/notice

NEWS
Weekly arbitration update: Arbitration Act 2025 enacted; English and Scottish case law on anti-suit injunctions, stays and jurisdiction; global enforcement rulings, institutional statistics and rule reforms

In this issue: Arbitration in England & Wales International Arbitration Sector-and industry-specific arbitration Institutional and ad hoc arbitration Other arbitration and ADR-related news and developments Daily and weekly news alerts New and updated content Useful information Arbitration in England & Wales Arbitration Bill receives Royal Assent, strengthening England and Wales as an arbitration hub The Arbitration Bill secured Royal Assent from His Majesty the King on 24 February 2025, and now takes effect as the Arbitration Act 2025. This targeted refinement of the Arbitration Act 1996 further consolidates London’s standing as a premier arbitration seat. See News Analysis: Arbitration Bill receives Royal Assent, strengthening England and Wales as an arbitration hub and LNB News 25/02/2025 7. Court of Appeal—final anti-suit injunction varied to avoid Russian court penalty In UniCredit v RusChemAlliance [2025] EWCA Civ 99, the Court of Appeal modified a final anti-suit injunction, removing the injunctive relief while keeping a declaration that...

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NEWS
Arbitration update: England and Wales guidance on conflicting clauses, arbitrator removal and s 68; global caseload statistics; AI in arbitration; Cayman pro-arbitration; practice updates, journals and webinars

In this issue: Arbitration in England & Wales International arbitration Institutional and ad hoc arbitration Investment treaty arbitration Other arbitration and ADR-related news and developments Daily and weekly news alerts New and updated content Useful information Arbitration in England & Wales Court of Appeal clarifies approach to conflicting dispute resolution clauses In Tyson v GIC Re, India [2026] EWCA Civ 40, the Court of Appeal set out how to read competing dispute resolution provisions. If inconsistent terms—such as rival arbitration and jurisdiction clauses—appear within a single document, it should be construed holistically, aiming to give effect to all clauses where possible. That principle has limited application where the inconsistencies arise across different documents and a hierarchy provision or ‘confusion clause’ is engaged. In those circumstances, as in this case, the hierarchy clause prevails. This notable judgment underscores the value of a clearly drafted, express hierarchy provision when conflicts occur. See News Analysis: Court of Appeal...

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NEWS
Arbitration weekly: key English rulings, India non-signatory joinder, French enforcement limits, Singapore challenges, ICSID intra-EU ECT, and AI/TPF updates

In this issue: Arbitration in England & Wales Arbitration under the AA 1996 Act International Arbitration Investment treaty arbitration Other arbitration and ADR-related news and developments Daily and weekly news alerts New and updated content Arbitration in England & Wales Quinn Emanuel must ID source of forged Deripaska report On 14 October 2024, a judge ordered Quinn Emanuel to disclose the identity of the intermediary who supplied a fabricated report implying that Russian industrialist Oleg Deripaska deceived arbitrators in a dispute with a former business partner. See: Quinn Emanuel must ID source of forged Deripaska report. Arbitration under the AA 1996 Act Binding nature of dispositive part of award and revival of tribunal’s jurisdiction In AZ v BY, the English Commercial Court affirmed that, in an arbitration governed by the Arbitration Act 1996, the dispositive section of an award is binding. The tribunal’s dispositive wording amounts to a complete statement of the granted...

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View the related Practice Notes about ADR clause/notice

PRACTICE NOTES
Starting ICC Arbitration under the 2021 Rules: Pre‑arbitration Steps, Emergency Relief, Expedited Procedure, and the Request for Arbitration—content, filing, fees, seat/law/language, transmission and amendment

This Practice Note sets out how to initiate arbitration under the 2021 International Chamber of Commerce (ICC) Rules of Arbitration (ICC Rules). The ICC Rules govern any ICC arbitrations begun on or after 1 January 2021, unless the parties expressly agree that an earlier version will apply. For an overview of the 2021 ICC Rules, see Practice Note: ICC (2021)—introduction to the ICC and arbitration under the ICC Rules. For guidance on the 2017 and 2012 ICC Rules, see: ICC arbitration—overview. Prior to commencing an arbitration pursuant to the ICC Rules When a dispute arises, it is crucial for parties and their advisers to check the dispute resolution clause in the relevant contract. If it provides for arbitration under the ICC Rules, at the outset the parties should consider, among other points: any limitation period (whether contractual or statutory) by which the arbitration must be commenced. For more detail under English and Welsh law, see Practice Note: Limitation periods in arbitration (England & Wales) ...

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PRACTICE NOTES
Ireland—Pre‑action dispute resolution and litigation checklist: ADR clauses, Mediation Act 2017 duties, merits, limitation, parties, urgent relief, costs, settlement, discovery, issuing and serving proceedings

This Practice Note offers a concise overview of the matters that warrant attention at the outset of a dispute, including: Is there a dispute resolution procedure or clause? Assess whether a specified dispute resolution mechanism or clause governs the issue at hand. Where one applies, reflect on: the procedural steps and conditions stipulated by the clause the governing law applicable to that clause the forum with jurisdiction over the dispute (and whether that forum is in fact a court) Where proceedings are commenced in defiance of an arbitration clause, the court must stay the claim. Mediation provisions, if expressed with sufficient certainty, must likewise be honoured, and non-compliance may attract an adverse costs order. If a mediation or other dispute resolution clause exists and has not been observed, the court will generally pause any action to enable the parties to fulfil their contractual obligations. Mediation Act 2017 (Ireland), s 14 (as amended) (MA 2017 (IRL)) imposes a duty...

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PRACTICE NOTES
Scottish Property ADR: Negotiation, Mediation, Expert Determination, Arbitration, Adjudication and ENE; Clause Drafting, Enforceability and Interaction with Court Proceedings

When disagreements arise in property transactions, parties typically have a number of avenues for resolving matters, each bringing its own benefits and drawbacks. This Practice Note explores those routes and provides examples of the types of property dispute that may lend themselves to settlement through alternate dispute resolution (ADR). ADR in property disputes It is well recognised that ADR can be an effective method of resolving disputes, especially in property disputes and other commercial transactions. ADR is: efficient cost-effective capable of producing settlements that courts may not be able to replicate more imaginative than judicial awards tailored to the commercial needs of the parties At present, ADR is not compulsory in Scotland, so it is not a necessary pre-requisite to legal proceedings; however, practitioners still have obligations to advise on, and consider, ADR...

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View the related Precedents about ADR clause/notice

PRECEDENTS
Service Charge Reserve Fund Clause Precedent for Leases: Contributions, Fund Account/Interest, Landlord Obligations, Shortfall, End of Term, Assignment, Insured Damage, ADR

1 Reserve Fund 1.1 Definitions In this clause, the following further definitions apply: Fund Account – an interest‑bearing [ trust ] account [ opened with [ name of bank ] ] held in the Landlord’s name; Reserve Fund – a fund that the Landlord may, though is not obliged to, set up and keep from time to time to receive and hold a Reserve Fund Contribution; Reserve Fund Contribution – the sum (if any) in each Service Charge Period that the Landlord [ (acting reasonably) ] determines to be a fair annual payment by the Tenant towards the advance funding of [ providing the Services OR regularly‑recurring major items of [ the Service Costs OR service charge expenditure ] ] [ (including, but not limited to, repair, decoration, maintenance and renewal) ], and including any VAT payable where the Landlord cannot obtain a credit for that VAT from HM Revenue & Customs...

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PRECEDENTS
Precedent mediation notice where there is no contract or ADR clause (without prejudice save as to costs)

Without prejudice save in respect of costs [ Insert name and address of other party's solicitors ] [ Insert date ] Dear [ insert organisation name ] [ Insert case heading ] — Mediation Notice Our respective clients were unable to settle the dispute through [ informal ] negotiations [ between their respective senior executives ]...

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PRECEDENTS
Precedent lease clause establishing a service charge sinking fund: definitions, contributions, interest and reporting, landlord duties, shortfall recovery, end-of-term and assignment effects, insured/uninsured damage adjustments, and ADR

1 Sinking Fund 1.1 Definitions For this clause, the following supplementary definitions shall apply: Fund Account • an interest-accruing [ trust ] account [ held with [ name of bank ] ] in the name of the Landlord; Sinking Fund • a fund that the Landlord may, but is not required to, create and maintain from time to time for receiving and holding any Sinking Fund Contribution; Sinking Fund Contribution • the sum (if any) in each Service Charge Period that the Landlord [ (acting reasonably) ] assesses as a fair annual contribution by the Tenant towards projected future costs of the [ [ major ] repair, ] renewal and/or replacement [ of the [ Property OR Building OR Centre ] AND Plant ] (including any applicable VAT to the extent that the Landlord cannot obtain a credit for that VAT from HM Revenue & Customs)...

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