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ARTICLE · 01 MARCH 2016

ADR clauses: are they meeting expectations?

DibbsBarker
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ADR clauses are often incorporated into leases, and landlords may include them in service and supply agreements.

AustraliaReal Estate and Construction
Emma Hodgman (Formerly With DibbsBarker)
Emma Hodgman (Formerly With DibbsBarker)
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Services: Property & Projects
Industry Focus: Property

What you need to know

  • Alternative dispute resolution (ADR) can often provide cost-effective alternatives to court proceedings when disputes between parties arise, including those between landlords and tenants.
  • ADR will not always be appropriate in every case, and difficulties can sometimes surface in the practical application of ADR clauses contained in leases and other agreements.
  • It is important for all parties to carefully consider the ADR clauses that appear in their contractual documents, and to understand ADR's limitations.

Alternative dispute resolution (ADR) clauses are commonly incorporated into leases, and landlords often include them in other documents such as service and supply agreements.

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