Appendix 1

Settlement of government disputes through ADR – March 2001
Government Departments and agencies make these commitments on the resolution of the disputes involving them:

Alternative Dispute Resolution will be considered and used in all suitable cases wherever the other party accepts it.
In future, Departments will provide appropriate clauses in their standard procurement contracts on the use of ADR techniques to settle their disputes. The precise method of settlement would be tailored to the details of individual cases.
Central Government will produce procurement guidance on the different options available for ADR in Government disputes and how they might best be deployed in different circumstances. This will spread best practice and ensure consistency across Government.
Departments will improve flexibility in reaching agreement on financial compensation, including using an independent assessment of a possible settlement figure.

There may be cases that are not suitable for settlement through ADR, for example, cases involving intentional wrong doing, abuse of poser, public law, human rights and vexatious litigants. There will also be disputes where, for example, a legal precedent is needed to clarify the law or where it would be contrary to the public interest to settle. Government Departments will put in place performance measures to monitor the effectiveness of this undertaking.

NHSLA Initiative
Following the Government pledge made in 2001, the National Health Service Litigation Authority (NHSLA) published the following;

“The encouragement of greater use of mediation and other forms of alternative dispute resolution is one of the options considered by the NHSLA who are responsible for handling clinical negligence claims against the NHS. The NHSLA is working with the Legal Services Commission to develop a joint strategy for promoting greater use of mediation as an alternative to litigation in clinical negligence disputes.

Since May 2000 the NHSLA has been requiring solicitors representing NHS bodies in such claims to offer mediation in appropriate cases and to provide clear reasons to the Authority if a case is considered inappropriate”.