New All Purpose Dispute Resolution Centre Opens

On 3 August 2010 the Australian International Disputes Centre (AIDC) was formally opened by the Commonwealth Attorney-General Robert McClelland and NSW Attorney-General John Hatzisgergos.

What is the AIDC?

The AIDC is a joint initiative of the Commonwealth and NSW governments, the Australian Commercial Disputes Centre and the Australian Centre for International Commercial Arbitration.

The establishment of the AIDC is part of a package of legislative measures that the Federal Government has undertaken to improve arbitration facilities in Australia, including a number of reforms to the International Arbitration Act. Mr McClelland explained that "these changes mean that Australia, for the first time, will now have a harmonised system for both domestic and international arbitration." Mr McClelland also announced that the Federal Government has commenced negotiations with the Permanent Court of Arbitration, which is based in The Hague, to enable the Court to conduct matters in Australia.

It is intended that the AIDC will become the Australian hub of dispute resolution, offering services for both domestic and international matters, with a particular focus on attracting corporations operating in the Asia-Pacific region. Located on Castlereagh Street, Sydney, the AIDC is purpose-built to host dispute resolution processes, with a number of mediation and break-out rooms available for hire. Panels of accredited dispute resolvers and support staff are available to assist those making use of the facilities.

The AIDC also offers mediation skills workshops and advanced training in arbitration, mediation, adjudication and expert determination.

Further information about the facilities and education courses offered by the AIDC is available here.

The growing importance of alternative dispute resolution

Alternative Dispute Resolution (ADR) processes are becoming increasingly important as a means of resolving disputes. Speaking at the launch of the AIDC, Mrs Heather Ridout, CEO of the Australian Industry Group commented: "Commercial disputes are a reality of doing business; minimising them and resolving them well is the key."

ADR can be an attractive alternative to litigation given the time and costs which can be spared in avoiding litigation. Additionally, the resolution of a dispute through ADR offers parties the opportunity to resolve their issues by consensus and to reach a commercially sensible settlement.

Alternatives to litigation are best considered before any dispute has arisen, and commercial agreements now frequently include compulsory dispute resolution clauses which require parties to partake in a formal dispute resolution process prior to litigation.

Even after commencing proceedings, courts may encourage parties and their lawyers to adopt ADR processes in the early stages of the matter, reflecting the general shift towards case management procedures to increase the efficiency of the court system. Under s 26 of the Civil Procedure Act judges retain the power to refer the parties to mediation at any time, with or without their consent.

Making the most of ADR

The Government's sponsorship of the AIDC highlights the significance of ADR processes in the Australian legal system. It is essential that parties considering entering into a commercial agreement are well informed of available ADR processes. The inclusion of a dispute resolution clause in any agreement must be carefully drafted to ensure its enforceability.

In circumstances where court proceedings are already underway, mediation can still offer parties a way of reducing further litigation costs.

The opening of the all purpose AIDC is an important and welcome addition to ADR in Australia.

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