Dispute resolution is fast becoming a global trend

Alternative dispute resolution (ADR) processes have fast been gaining prominence around the world, yet in South Africa it is seldom used outside of employment and family law. However, with some of the country’s biggest trading partners – including Southeast Asia and Europe – increasingly using ADR to resolve civil, commercial and trade disputes, South Africa faces the danger of being left behind if it does not start to follow the
same path.

This is according to Professor Barney Jordaan, head of the University of Stellenbosch Business School’s new Postgraduate Diploma in Dispute Settlement, who says mediation and arbitration – two forms of ADR that are addressed by the USB’s new course – are being used to great effect in other markets around the world.

A study by the United Kingdom’s Centre for Effective Dispute Resolution (CEDR) found that business disputes cost UK companies £33 billion a year. The research found that only £6bn was spent on legal fees, with the remaining £27bn arising from damage incurred by business as a consequence of those disputes.

Prof. Jordaan says statistics show that of those companies and individuals who choose to settle their dispute through mediation – the most cost-effective of all ADR procedures – 60% are able to settle on the same day, with a further 20% settling within 30 days. “The remaining 20% of cases are exceptional, and for various reasons need to be litigated in order to resolve the dispute.

“Opting for mediation rather than litigation can save an enormous amount in costs and also makes good business sense, as it often means business relationships are maintained.

“There is no real winner in litigation, as it is costly, time consuming, and afterward that business relationship is destroyed,” Prof. Jordaan adds.

He says companies will be under increasing pressure to use ADR. For example, the King III Report states that companies need to consider ADR before litigating in the courts, while the new Companies Tribunal will implement ADR processes to resolve disputes under the Companies Act.

Prof. Jordaan says the new course is appropriate for a broad cross section of people including lawyers, corporate counsel, those occupying senior human resources positions both in the private sector and the government, as well as those looking to establish a different career path.

“There are many people out there currently working within the field of mediation who want a formal qualification, while for others it can also provide a new career path or can simply broaden the skills of litigators,” he adds.

The course – one of the first formal programmes in South Africa to provide those interested in the field with a comprehensive skills set and knowledge on a postgraduate level – is designed to be as flexible as possible to accommodate those who are most likely to choose this course.

The lectures include some of the best minds in dispute settlement in South Africa and elsewhere.

It includes Prof. Alan Rycroft, University of Cape Town; Prof. David Butler, Stellenbosch University; Prof. Brian Ganson, Africa Centre for Dispute Settlement; John Brad, Conflict Dynamics; Prof. Laurence Boulle, Mandela Institute, Wits University; Chris Todd, Bowman Gillfillan; Felicity Steadman, Conflict Dynamics; and various guest lecturers.

Once completed, graduates of the programme receive accreditation as mediators or arbitrators and can apply for admission on the panels of leading service providers.

Anke Bäumler