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ECC Luxembourg 5 th Conference on Aspects of European Consumer Law Luxembourg 10 October 2013. Online Dispute Resolution: The Story so far and Predictions for the Future G Brian Hutchinson BCL LLM DAL FCIArb BL Accredited Mediator Senior Lecturer, School of Law, University College Dublin
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ECC Luxembourg 5th Conference on Aspects of European Consumer Law Luxembourg10 October 2013 Online Dispute Resolution: The Story so far and Predictions for the Future G Brian Hutchinson BCL LLM DAL FCIArb BL Accredited Mediator Senior Lecturer, School of Law, University College Dublin Principal, GBH Dispute Resolution, Dublin
Opening Thought Cambridge Consultants “ If I’d asked my customers what they wanted, they’d have said ‘a faster horse’ “ Henry Ford(1863-1947), Founder of the Ford Motor Company
ODR as “Disruptive Technology” Changing the way we do things, not just making it easier to do them. Richard Susskind, “Tomorrow’s Lawyers: An Introduction to your Future”
Context Directive on Consumer ADR 2013/11/EU, 21 May 2013, Regulation on ODR , 524/2013, 21 May 2013
The Chain of Conflict • Disputes are part of a chain • There are opportunities or choices at each stage to deal with the escalation • A dispute process can learn from “why” the parties escalated
Causes of Conflict Moore
Conflict is Dynamic - Cycles of Conflict Rummell / ADR Group
ADR & ODR - What’s out there? • ADR: Diversity & Variety • E.g. over 750 consumer ADR schemes across Europe (DG Sanco ADR Study, 2009). • Current Issues: • Awareness • Engagement • Coverage • Funding • Consumer ADR Directive will assist substantially in addressing these concerns
ODR • Range of Providers • www.odr.info • Range of Disputes Covered • Range of Resolution Models • Range of Business Models
Existing Models and Providers • Differences in: • Scope of Application • Type of Service • Cost of Service • Types of Claim • Automated Negotiation, Assisted Negotiation, Mediation, Case Appraisal, Crowd-Sourced Dispute Resolution and Arbitration
ODR Models • Automated Negotiation • No offline analogue • Eg. Cybersettle (“Double Blind Bidding”) • Facilitated negotiation • Online space for direct communication • May be structured (“fourth-party”) / Negotiation Support • Eg. ECODIR, Squaretrade, Online Confidence, Online Resolution, The Mediation Room • Online Mediation • Assisting parties to settle – identifying common ground, alternatives, etc • Eg. ECODIR, (Squaretrade), JAMS, MARS, Online Resolution, Web Mediate • Case Appraisal and Crowdsourced Dispute Resoluton • Online Jury / panel of experts • Eg. i-Courthouse, EbayCourt, • Online Arbitration • Binding determination by neutral third-party • Eg. Squaretrade, Nova Forum, MARS, JAMS, eNeutral, e@drSquare Trade, Resolution Forum, Online Resolution, Private Judge, Online Confidence, Web Assured, Web Mediate and Word&Bond • Non-Binding Arbitration • ICANN UDRP
Online Mediation (Video Based) MARS Mediation
eBayCourt.com G Brian Hutchison, UCD School of Law, Dublin 25
PayPal-Court.com G Brian Hutchison, UCD School of Law, Dublin 26
Marktplaats Gebruikersjury G Brian Hutchison, UCD School of Law, Dublin 27
ReviewRef.com G Brian Hutchison, UCD School of Law, Dublin 28
Online Arbitration T Schultz, UNIGE
A la Carte Dispute Resolution Built on the Experience of 400,000,000 cases www.modria.com
Apportionment Tools Fairandsquare.ie
Fourth Party Effect - • Eg. Asynchronous text based communication • “Reducing the stress of interaction” • Van Veenen, Tilburg University, (2010) • “shape communications into a constructive and polite negotiation” • RabinobichEiny (2006)
Regulatory Initiatives • No ODR Specific Regulatory Legislation • Legislative Instruments and initiatives from ADR: Commission Initiatives • European Code of Conduct on Mediation • EC Recommendations 98/257 and 2001/310 • 98/257 – Active (puts solution to parties) • independence, transparency, the adversarial principle, effectiveness, legality, liberty and representation. • 2001/310 – Passive (assists parties to their own solution) • impartiality, transparency, effectiveness and fairness • Other major regulatory requirements include Data Protection legislation • Self –Regulation • Many ODR Specific Self Regulatory initiatives • Common Principles : Transparency, Accessibility, Neutrality, Efficiency, Fairness
Self - Regulatory Initiatives ICC “Best Practices for Resolving Disputes Online” (2003) American Bar Association “Addressing Disputes in Electronic Commerce” (2002) UNCITRAL Working Group on ODR (2011 – ongoing)
What is UNCITRAL Doing? • Working Group III • http://www.uncitral.org/uncitral/commission/working_groups/3Online_Dispute_Resolution.html • Three-Tiered Process: • Negotiation • Facilitated Settlement • Arbitration • Challenges, Timeline
Other Initiatives • ISO 10003 - Guidelines for dispute resolution external to organizations • Taxonomy – e.g. “Facilitative, Advisory, Determinative” • CEN /ISS Workshop on Standardization of Online Dispute Resolution Tools
Modes of Standardization • Minimum Standards • “One Size Fits All”
Modes of Standardization • Common Understanding - Taxonomies
Modes of Standardization • Common Understanding - including Taxonomies
The Stand-ODR Workshop Agreement 16026 (2009) • Workshop Agreement • Survey of Existing ODR models and Providers • Analysis of the ODR Processes • Study of the Technical and Regulatory Backgrounds • Identification of the Interoperability Aspects • Development of an ODR Taxonomy and Onthology • Conclusion and Recommendations