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Inquiry Into Alternative Dispute Resolution and Restorative Justice T I Ve D Spute R Esolut on a N D Estor

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Inquiry Into Alternative Dispute Resolution and Restorative Justice T I Ve D Spute R Esolut on a N D Estor LAW REFORM COMMITTEE LAW LAW REFORM COMMITTEE INQUIRY INTO Inqu ALTERNATIVE DISPUTE I ry ry I nto Altern RESOLUTION AND RESTORATIVE JUSTICE A t I ve D MAY 2009 I spute r esolut I on A n D r estor A t I ve Just I ce M AY 2009 2009 AY LAW REFORM COMMITTEE PARLIAMENT OF VICTORIA, MELBOURNE VIC 3002 T 8682 2851 F 8682 2818 www.parliament.vic.gov.au/lawreform Inquiry into alternative dispute resolution and restorative justice Final report of the Victorian Parliament Law Reform Committee May 2009 ORDERED TO BE PRINTED by Authority Victorian Government Printer Parliamentary Paper No. 184, Session 2006-2009 Parliament of Victoria, Australia Inquiry into alternative dispute resolution and restorative justice Law Reform Committee ISBN — 978-0-9757984-8-5 ISBN — 978-0-9757984-9-2 (electronic) Printed on recycled paper. This report is also available at www.parliament.vic.gov.au/lawreform Committee membership Members Mr Johan Scheffer, MLC Member and Chair from 9 August 2007 Mr Robert Clark, MP Deputy Chair Mr Colin Brooks, MP Mr Luke Donnellan, MP Mr Martin Foley, MP Member from 30 October 2007 Mrs Jan Kronberg, MLC Mr Edward O’Donohue, MLC Mr Tony Lupton, MP Member until 8 August 2007 Mr Brian Tee, MLC Member and Chair until 9 August 2007 Mrs Judy Maddigan, MP Member from 8 August 2007 until 30 October 2007 Staff Ms Kerryn Riseley Executive Officer Ms Deanna Foong Research Officer from 25 August 2008 Ms Kate Buchanan Research Officer until 29 August 2008 Ms Susan Brent Research Officer Ms Helen Ross-Soden Administration Officer Mr Ben Symon Legal Policy Intern iii Functions of the Law Reform Committee The functions of the Law Reform Committee are set out in section 12 of the Parliamentary Committees Act 2003 (Vic). That section states: (1) The functions of the Law Reform Committee are, if so required or permitted under this Act, to inquire into, consider and report to the Parliament on any proposal, matter or thing concerned with — (a) legal, constitutional or parliamentary reform (b) the administration of justice (c) law reform. Terms of reference The following reference was made by the Legislative Assembly on 1 March 2007: To the Law Reform Committee — for inquiry, consideration and report no later than 30 June 2008 on: (a) the reach and use of alternative dispute resolution (ADR) mechanisms, including Government established ADR schemes and restorative justice schemes, so as to improve access to justice and outcomes in civil and criminal court jurisdictions and to reduce the need, where possible, for contact with the court system, particularly in marginalised communities (b) whether a form of Government regulation of alternative dispute resolution providers is appropriate or feasible so as to ensure greater consistency and accountability for Victorians wishing to access alternative dispute resolution. The reporting date was extended to 31 March 2009 by resolution of the Legislative Assembly on 26 June 2008. The reporting date was further extended to 31 May 2009 by resolution of the Legislative Assembly on 31 March 2009. iv Contents List of figures ...........................................................................................................xiii List of case studies.................................................................................................... xv List of recommendations .......................................................................................xvii Glossary................................................................................................................xxxiii Chair’s foreword ......................................................................................................xli Executive summary................................................................................................xliii Part I: Introduction............................................................................... 1 Chapter 1 – Introduction........................................................................................... 3 1.1 The scope of this Inquiry........................................................................... 3 1.1.1 What is ADR?........................................................................... 4 1.1.2 What is restorative justice?....................................................... 5 1.1.3 What are ‘marginalised communities’? .................................... 5 1.2 The context for the Inquiry........................................................................ 6 1.2.1 The policy context .................................................................... 6 1.2.2 The broader context – the rise of non-adversarial justice......... 8 1.3 The relationship between ADR and restorative justice............................. 9 1.3.1 A common non-adversarial justice approach.......................... 10 1.3.2 Separate and distinct concepts ................................................ 10 1.3.3 The Committee’s approach..................................................... 11 1.4 Conduct of the Inquiry ............................................................................ 12 1.5 Outline of this report ............................................................................... 13 Part II: Alternative dispute resolution.............................................. 15 Chapter 2 – ADR: History and background.......................................................... 17 2.1 The history and development of ADR .................................................... 17 2.2 The development of ADR in Australia.................................................... 18 2.3 What is ADR? ......................................................................................... 20 2.3.1 Defining ADR......................................................................... 20 What does the acronym ADR mean?................................. 21 2.3.2 Types of ADR......................................................................... 22 2.4 Overview of Victoria’s contemporary ADR landscape .......................... 26 2.4.1 ADR service providers in Victoria ......................................... 26 Courts and tribunals ........................................................... 26 Public ADR providers........................................................ 29 Industry ADR schemes ...................................................... 30 Private ADR providers....................................................... 31 2.4.2 Online dispute resolution (ODR)............................................ 32 v Inquiry into alternative dispute resolution and restorative justice Chapter 3 – Improving outcomes through ADR................................................... 35 3.1 The promise of ADR............................................................................... 35 3.1.1 Outcomes for participants....................................................... 36 Settlement or agreement rates............................................ 36 Participant satisfaction....................................................... 38 Fairness .............................................................................. 40 Agreement durability ......................................................... 42 Time ................................................................................... 43 Cost .................................................................................... 44 Flexibility........................................................................... 46 Confidentiality ................................................................... 48 Participant empowerment .................................................. 48 Preserving relationships..................................................... 49 3.1.2 Outcomes for the state ............................................................ 50 Savings for the justice system............................................ 50 Savings for the state as a litigant........................................ 52 3.1.3 Outcomes for society.............................................................. 53 3.1.4 The Committee’s findings ...................................................... 54 3.2 An evidence-based approach to ADR ..................................................... 55 3.2.1 Existing knowledge constraints .............................................. 55 3.2.2 Promoting an evidence-based approach to ADR.................... 56 The role of government...................................................... 57 What kind of data and research is required?...................... 58 Challenges for data collection............................................ 59 Chapter 4 – Increasing access to justice through ADR ........................................ 63 4.1 What is access to justice?........................................................................ 63 4.2 The relationship between access to justice and access to ADR .............. 64 4.3 A framework for ADR in Victoria .......................................................... 64 4.4 The use and users of ADR services......................................................... 67 4.4.1 The use of ADR services ........................................................ 67 4.4.2 The users of ADR services ..................................................... 68 4.5 Features of ADR that promote access to justice ..................................... 69 4.5.1 Service diversity..................................................................... 70 Service overlaps................................................................
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