The executive tribunal, or ‘mini-trial’, is a less common form of alternative dispute resolution (ADR) in the UK but widely used abroad, especially in the US. It involves senior executives from the disputing companies directly in the decision-making, offering a detailed review of each side’s legal position. In this article, we explore how executive tribunals work and consider their pros and cons.
If you’re facing a commercial dispute and want to explore innovative resolution methods such as executive tribunals, our experienced business dispute solicitors can help you weigh your options and find the best path forward.
We'll examine:
- When is an executive tribunal or mini-trial used?
- The process and stages of executive tribunals
- How long do mini-trials last?
- Is the outcome of an executive tribunal legally binding?
- Advantages and disadvantages of executive tribunals
- How does confidentiality in Executive Tribunals compare to other ADR methods?
- Summary
When is an executive tribunal or mini-trial used?
Executive tribunals are rarely held without a great deal of consideration. As we will see below they demand significant preparation and staff resources, including the valuable time of senior personnel. Getting ready for an executive tribunal or mini-trial will usually involve months of work, and considerable legal, expert and other fees. In fact, this form of ADR is usually seen as the most expensive – albeit not as costly as full-scale litigation.
For these reasons, executive tribunals are most suited to large-scale commercial disputes involving big companies with a lot to lose. Often the biggest incentives to embarking on a mini-trial will be the desire to protect a commercial reputation and a wish to preserve an ongoing business relationship.
The process and stages of executive tribunals
As with most types of ADR the process is consensual. It’s up to the parties to decide the details of how matters should proceed. Executive tribunals usually have three distinct stages as follows:
- Before the hearing: the parties choose a neutral third party to join the panel of executives that will form the tribunal and agree how the mini-trial will proceed. This involves setting out in writing timings, length of hearing, provisions for document disclosure and hearing from witnesses and other procedural matters.
- The hearing: mini-trials loosely follow the shape of formal court hearings but the panel is not constrained by the strict rules of evidence that apply in court. Panel members listen to oral arguments from both sides’ lawyers, evidence is given by witnesses, and any experts and members of the tribunal ask questions where appropriate. Lawyers finalise matters with closing arguments.
- After the hearing: The panel members retire to begin to attempt a binding resolution of the dispute. The third-party panel member will often act as a type of independent mediator to facilitate agreements.
How long do mini-trials last?
Preparation time: Preparation can be extensive, taking several weeks or even months, especially for complex or high-value disputes. This includes exchanging documents, compiling evidence, and preparing submissions.
Hearing duration: The hearing itself is usually much shorter than a full court trial, typically lasting one to three days. Very complex disputes might run a little longer, but mini-trials are expressly designed to be condensed and efficient.
Post-hearing deliberations: After the hearing, executive panels often take days to deliberate and negotiate a resolution, sometimes immediately following the hearing or within a short subsequent window.
Total timeline: From initiation to completion, the entire mini-trial process often spans several months, but is still usually much faster than litigation or arbitration.
Is the outcome of an executive tribunal legally binding?
Executive tribunals are private, consensual processes. Unless the parties agree to be bound by a decision they will not be legally required to implement it. If negotiation fails, the third-party panel member may sometimes prepare an opinion as to what the likely outcome in litigation might be. But this is not an enforceable document.
Advantages and disadvantages of executive tribunals
| Advantages | Disadvantages |
| Process is private and confidential. Disclosures made can’t be referred to in later court action | Lengthy preparation and cost in resources of senior employee time and energy |
| Structured to encourage flexible methods of agreement | Although designed to be informal the use of lawyers and the ‘trial-light’ aspect of the hearing might entrench parties and obstruct settlement |
| Senior executives on tribunal may not have been involved first-hand with dispute. Being one-step removed can mean a fresh outlook that can lead to agreement |
How does confidentiality in Executive Tribunals compare to other ADR methods?
Executive Tribunals: Confidentiality is a cornerstone of the mini-trial process. All discussions, documents, and disclosures during the tribunal are generally confidential and cannot be used in subsequent litigation or arbitration unless specifically agreed otherwise. This can help facilitate open, honest negotiations.
Compared to Other ADR Methods:
- Mediation: Mediation is also highly confidential, with the same general principles: what is disclosed or said in mediation cannot be used later in court. Mediators cannot be called as witnesses in subsequent proceedings.
- Arbitration: Arbitration, while generally private, is not always as confidential by default; confidentiality may depend on institutional rules or explicit agreement between parties. Arbitration awards may also become public if enforcement proceedings go to court.
- Litigation: By contrast, court proceedings are typically public, and documents disclosed in litigation may become public record.
Summary
Executive tribunals (mini-trials) offer a confidential and flexible way to resolve major commercial disputes without going to court. By involving senior executives from each company and an independent chair, this process allows both sides to discuss legal arguments in a focused setting and work toward a solution. While preparation can be extensive, mini-trials are faster than traditional litigation and help protect business relationships. Our business dispute solicitors can advise if a mini-trial is right for your case and guide you through each stage of the process.
