Adjudication Framework - Overview of the proposal - Ministry of Justice

Overview of the proposal

A fresh approach to dispute resolution for businesses

We want your feedback on our proposal for an out of court statutory adjudication framework that gives businesses a new way to resolve disputes quickly and privately.

Civil law governs relationships between people rather than between the state and its citizens. Our civil law systems underpin New Zealanders’ trust and confidence in each other. The system provides a range of ways for people to resolve disagreements over contracts, unpaid debts, torts (where one person wrongs another), or property disputes.

The Ministry of Justice has been looking at ways to improve out of court dispute resolution for civil commercial claims. Strengthening alternative avenues will give businesses more ways to resolve civil disputes. Finding new ways to enable fast resolution of disputes will help parties to get on with growing their businesses, innovating, and contributing to the New Zealand economy.

Our preferred option is to introduce a statutory adjudication framework that will give businesses a new way to resolve civil disputes quickly and privately, as an alternative to filing a claim in court or arbitration.

What is statutory adjudication?

Statutory adjudication Statutory adjudication

Adjudication is one of a range of different methods that are used to resolve disputes. The methods can broadly be separated into two broad processes that use ‘facilitators’ or ‘decision makers’ (Fig 1). Statutory adjudication is a legislated process where parties can ask a qualified and neutral third party (the adjudicator) to make an enforceable decision on a dispute over things like a debt or a contract. Adjudications are usually determined on the papers, without a hearing. Parties can choose whether or not to engage legal representation.

Overview of the proposed adjudication framework

Proposed key elements of a new adjudication framework Proposed key elements of a new adjudication framework

The next five sections present our proposals for the key elements of a new adjudication framework. Most of the proposals are modelled on the Construction Contracts Act 2002 and the Arbitration Act 1996.