Enforceability of alternative dispute resolution clauses: position in UK, USA and India

Abstract

Times have drastically changed from a point in history when conventional judiciary viewed ADR as a threat to their existence to present period where ADR is viewed as an aid to existing legal system. However, with respect to non-binding form of ADR, there is till ambiguity prevailing which can be attributed to lack of legislative support and far from clear judicial approach. The article tries to analyse the judicial and legislative approach in enforcing such clauses in three common law jurisdictions, i.e., UK, USA and India. The article also delves into the landmark precedents dating more than half a century old which are still shaping the law makers of these respective countries. The article also explores the approach taken by the International Chamber of Commerce while dealing with ADR clauses as a separate clause or multi-tier dispute resolution clauses.