BUSINESSES should not feel pressurised into using alternative methods of settling commercial disputes rather than going to court simply to help the Ministry of Justice meet its budget cuts, a York dispute resolution lawyer warns.

Government moves to promote alternative dispute resolution (ADR) such as mediation should be seen partly as a way to help the Ministry of Justice meet its £3 billion cuts following the comprehensive spending review rather than being in the best interests of justice, says Johanne Spittle, head of York-based Denison Till’s dispute resolution department.

Parliamentary under secretary for justice Jonathan Djanolgy has said the Government will be renewing its ADR Pledge this year to increase the number of cases settled without going to court.

The CBI and British Chamber of Commerce have said they will work alongside the Government to develop the pledge.

However, Ms Spittle said the quest for cuts should not remove the choice for enterprises to use the courts if it is the best way to protect their business.

She has helped introduce ADR for commercial dispute resolution in York and North Yorkshire and has been involved in three ADR cases in Yorkm Ripon and Hull, two involving property and one professional negligence claim.

She said: “It is vital in the interests of justice that businesses have a real choice over whether to go to court or to mediate. Before there is an extension in the use of mediation and ADR, there must be hard evidence of its benefits, such as if settlement rates are increased and what the cost and time savings are.

“Two of the three cases I have just been involved in have settled through ADR, saving the parties thousands of pounds and avoiding the need to go to trial.

“If this were typical, it would be excellent but where a business is owed money or an important right such as intellectual property is being infringed, going to court quickly is essential.

“A company’s failure to act can mean their not getting paid or being unable to stop someone damaging their business. ADR is not right in every case.”

She said that the economic downturn had seen an increase in mediation because businesses owed money were paid faster than when they go through the courts, but this did not mean that too much faith should be put into its long-term benefits.