This was initiated with the view of instituting a well-structured dispute resolution intervention in the banking sector; creating awareness within commerce and industry; and facilitating referrals of commercial disputes to the LMDC for resolution through Alternative Dispute Resolution.
The Banking Track kicked off in January 2010 with the Dispute Resolution Survey of 25 banks. The responses received revealed a need for an intervention and the selling point is the need for the banks to take proactive steps to reduce their high litigation burden and consequently their contingent liability profile.
The first stage of this exercise was the Dispute Resolution Audit for 3 pilot banks. The cases were screened and recommendations made to the banks’ management of matters which should be referred to the LMDC for resolution through ADR, those for which the litigation process should be continued to completion and those to be discontinued.
The Audit exercise recommendations have been approved by the management of the pilot bank and the second phase of the project has begun, namely, advice by the legal department to external counsel to request the referral of the sixty designated cases to the LMDC for ADR.
The Dispute Resolution Audit exercise has successfully been carried out in 3 banks.