Over the past decade, and especially in the years leading up to 2025, Australian businesses have increasingly turned to Alternative Dispute Resolution (ADR) to resolve commercial disagreements. What used to be seen as an optional pathway is now, in many cases, the preferred one. Rising court delays, increasing legal costs, and a stronger emphasis on preserving commercial relationships have all contributed to ADR’s growing prominence.
We regularly work with clients who are weighing up the best approach to resolving a dispute. While litigation will always have a place, there is no question that ADR is becoming the more practical, strategic, and commercially sensible option for many businesses.
Why ADR is becoming the default first step
Traditional litigation can be lengthy, costly, and adversarial. Even straightforward matters can take years to reach a final hearing, and most businesses cannot afford the disruption, uncertainty, or reputational implications that come with drawn-out proceedings.
By contrast, ADR (which includes mediation, negotiation, conciliation, and structured settlement discussions) allows parties to retain more control. The process is typically quicker, less formal, and far more flexible than the court system. Rather than waiting for a judge to hand down a binding decision, parties can shape their own outcomes and agree on solutions that make sense commercially.
Preserving relationships and reducing stress
One of the most significant benefits of ADR is its ability to preserve working relationships. Litigation is inherently adversarial; parties are positioned against each other, evidence is dissected, motives are questioned, and by the end of the process, any opportunity for continued cooperation is often gone.
ADR takes a different approach. The focus is on communication and problem-solving rather than fault-finding. This is particularly valuable in industries where businesses depend on long-term partnerships – construction, retail supply chains, franchising, professional services, and family-owned operations.
For many clients, ADR is also simply less stressful. Without the rigid procedural requirements of court processes, parties can engage more openly, explore creative options, and avoid the pressure and unpredictability that often accompany litigation.
Faster resolution in a congested system
Court backlogs across Australia have grown considerably in recent years, with some matters taking more than 18 months to be listed for hearing. For businesses facing operational or financial pressure, those delays can be damaging.
ADR offers an opportunity to resolve disputes far more quickly. Mediations can often be arranged within weeks. This accelerated timeline can be crucial for businesses that need certainty to move forward, whether that involves continuing operations, securing new contracts, or satisfying the expectations of investors or insurers.
Cost-effective and commercially sensible
Litigation costs can escalate rapidly. Legal fees, expert reports, discovery obligations, and court appearances all add up, often making the fight disproportionately expensive compared to the issue in dispute.
ADR is almost always more cost-effective. The shorter time frame, reduced formality, and streamlined process keep expenses in check. Even if a matter does not fully resolve at mediation, it often leads to partial agreements or narrow issues, reducing the time and cost of any subsequent litigation.
For many businesses, ADR is therefore a commercial decision.
Confidential and less damaging to reputation
Court proceedings are generally public. Judgments are accessible online, filings can be viewed by third parties, and disputes involving well-known businesses may attract media attention.
This level of transparency is not always desirable, especially where commercially sensitive information is involved.
ADR, on the other hand, is confidential. Discussions remain private, documents are not published, and parties have greater control over what becomes public. For clients concerned about brand protection or maintaining goodwill, confidentiality can be one of ADR’s most compelling advantages.
Where ADR works best
While ADR is useful across a wide range of industries, its benefits are particularly clear in disputes involving:
- commercial contracts
- partnership and shareholder disagreements
- property and leasing conflicts
- franchising issues
- supply-chain and trade disputes
- employment-related matters
- family-owned and closely-held business conflicts
In these situations, the ability to resolve issues quickly, discreetly, and collaboratively can make a significant difference to the ongoing success of the business.
How we support clients through ADR
At JCL Law Partners, we help clients prepare for and participate in ADR processes from start to finish. This includes analysing the commercial and legal issues, developing a negotiation strategy, preparing documentation, and representing clients in mediation or structured negotiations.
While ADR is designed to be less formal, it still requires careful preparation. Knowing the strengths and weaknesses of your position, understanding your best alternatives, and entering the discussion with clarity and structure can dramatically improve your chances of achieving a favourable outcome.
Importantly, we also help clients determine when ADR is appropriate – and when litigation may be unavoidable. Not every matter is suited to early resolution, and in some cases, court intervention is necessary to protect assets, enforce rights, or prevent ongoing harm.
The right time to seek help
Disputes rarely resolve themselves. The earlier a business seeks advice, the more options are available, whether through ADR, negotiated settlement, restructuring, or, if necessary, litigation.
ADR is not a sign of weakness. It is a practical, commercially focused tool that gives businesses greater control, reduces cost, limits risk, and promotes stability. As the business landscape becomes more complex and court delays continue to grow, ADR’s relevance will only increase.
At JCL Law Partners, we are committed to helping businesses across Queensland navigate disputes with confidence, clarity, and commercial insight. If your business is facing a conflict, now is the time to understand your options and to explore solutions that protect your long-term interests.
