Adjudication
This page has the following information about Adjudication:
What it is
When it is used
How it works
Cost
What it is
Like Arbitration, adjudication involves an independent third party - the adjudicator - considering the claims of both sides and making a decision. This is usually done on paper. Both sides send in written details of their argument, with copies of any letters, reports or other evidence. The adjudicator then makes a decision based on this information, and on what is generally considered to be good practice in the business concerned. The adjudicator is usually an expert in the subject matter in dispute.
Adjudication is usually more informal than arbitration.
Note: Most consumer adjudication schemes - such as CISAS, the Furniture Ombudsman (Qualitas) and the Postal Redress Service - produce decisions that are binding on the company but not on the consumer. However, the schemes to resolve Tenancy deposit disputes produce decisions that are binding on the consumer as well. That means that if you agree to use one of these tenancy deposiit schemes instead of county court, you cannot appeal the decision of the adjudicator and you cannot take your claim to court later.
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When it is used
You are most likely to come across adjudication is dispute resolution schemes run by trade associations to deal with consumer complaints about their members, or in schemes set up to deal with common disputes about service providers, but which are not about large sums of money.
You may also find that the term 'adjudication' is used to describe any process where an independent third party makes a decision about the best way to resolve a dispute. In this sense, ombudsmen, arbitrators and judges are all types of adjudicators.
You can find more details of some common UK schemes which use adjudication on this site:
CISAS uses adjudication to resolve disputes between consumers and some telephone and internet providers.
Furniture Ombudsman (Qualitas) tries to resolve disputes about furniture, kitchens and bathrooms using Conciliation. Where this fails, you can ask for an adjudicator to make a decision.
The Postal Redress Service resolves disputes between consumers and postal services.
There are three government-approved adjudication schemes to resolve Tenancy deposit disputes between landlords and tenants at the end of tenancies. Note that unlike other consumer adjudication schemes, these schemes result in decisions that are binding on the consumer as well as the company/landlord.
IDRS is an independent adjudication service run by the Centre for Effective Dispute Resolution (CEDR), which runs adjudication schemes for a number of businesses and trade associations. For example, IDRS runs CISAS and POSTRS as well as the ABTA scheme for travel disputes.
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How it works
Each scheme is slightly different, but there is a common procedure which will be followed in most cases.
Usually you are expected to first try to resolve your dispute directly with the company you are complaining about. You can get advice and information about dealing with consumer disputes from Consumer DirectGov.
Resolving your dispute may be impossible for a number of reasons:
- The company may not agree with your complaint
- The company may send you a letter making an offer that you are not happy with
- The company may fail to respond to your complaint within a reasonable time
At this stage you can apply to the relevant adjudication scheme. Some schemes require you to have a 'deadlock letter' from the company stating their final offer. Some require you to have tried to pursue your complaint for a minimum of 8 or 12 weeks. You can check the details with each scheme.
In adjudication schemes you need to provide the adjudicator with written details of your complaint. They will not usually talk to you about the problem, investigate the issues, or ask for more evidence from you or the company. This means that you need to fill in the application form carefully, giving all the relevant information, and make sure you send copies of all the letters and supporting evidence that you have. Adjudication schemes may have staff who will talk to you on the phone and help you do this. You could also get help from your local CAB or advice agency.
Once you have made your complaint, it will usually be sent to the company, and they will be invited to respond with their side of the story. This will also be in writing. You will often be given a chance to respond to what the company has said - though you can't raise any new issues at this stage.
An adjudicator will then be appointed, and all the papers sent to her/him to read and to make a decision. If the adjudicator finds in your favour, s/he will state what action the company should take to put things right. This may include compensation.
If you accept the decision (in those schemes which are not binding on the consumer and where you have the right to reject the decision and take the claim to court instead), the company is required to do what the adjudicator has said. This is because most schemes are either run by trade associations, or companies are required by law to be a member of an approved adjudication scheme. Compliance with the adjudicator's decision is a requirement of membership.
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Cost
Most schemes are free to consumers.
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January 2012
