Adjudication – Meaning, Definition, Process and Examples

Adjudication implies coming up with a judgment on any disputed issue. Adjudication is defined as a legal process by which a judge analyzes argumentation and evidence as well as legal reasoning to arrive at a decision that determines the obligations and rights between differing parties. Adjudication is a unique fast-track dispute resolution process under the Act. This method of dispute resolution is used most of the time.

What is Adjudication?

Adjudication is a legal process by which a court judge resolves issues between two parties. It indicates a lawful procedure of fixing a conflict and pronouncing a judgment or a decree in court proceedings. Usually, an adjudication represents pronouncing the final judgment in a case determining the course of action taken regarding the issue presented.

Geeky Takeaways:

• Adjudication is a process where a court judge resolves issues between two parties.
• Adjudication hearings are somewhat similar to the arbitration hearing process.
• In general, Adjudication hearings involve money, which results in the distribution of rights and obligations for all parties involved.

Adjudication: An Overview

Adjudication is a legal process that helps to expedite and deliver a court’s resolution regarding an issue between two parties. The result of the process is the opinion of a court and a judgment that is legally binding. Most adjudication hearings center on disputes that involve money and result in the distribution of rights and obligations for all parties involved. The legal process in adjudication differs from other justice-seeking or evidence-based court cases. Here, it is used to settle disputes between political officials, and two private parties; and public bodies and public officials.

Features of Adjudication

Adjudication is a kind of dispute resolution that is available under all the relevant contracts, where the dispute is determined by an independent adjudicator. The features of an Adjudication are as follows:

• Adjudications are quick in nature. Once an adjudicator receives the Claimant’s documents, the Adjudicator must make a decision within 30 days.
• Decisions made will be binding only till another decision is made in a subsequent proceeding. Either of the party can commence a proceeding in court or through arbitration.
• The method of Adjudication is cost-effective since they are less expensive than arbitration and litigation processes.
• Adjudication is available as a right. Without the consent of the other party, an adjudication can be commenced.
   

Advantages and Disadvantages of Adjudication

Adjudication has a number of advantages, which include:

• Adjudication is a quick way to resolve disputes. However, this deadline can be extended with the consent of both the parties.
• Adjudication is cheaper for parties than litigation.
• Adjudication can resolve a dispute while the contract is ongoing rather than waiting until the end of the project.
• Adjudication decision is private in contrast to litigation.

Despite the advantages of Adjudication, there are certain disadvantages as follows:

• In terms of expenses, adjudication costs cannot be recovered as that in litigation.
• Disputes can be referred at any time, and the opposing party can feel attacked, which is generally avoided in litigation.
• Parties have a very limited time to investigate the claim and prepare the response which sometimes leads to a rushed decision.
• Since the decision is unenforceable, there is considerable scope for the responding party to create mischief and shift to court proceedings which is a costly affair.

Arbitration v/s Adjudication

Arbitration is a systematic process where the parties to a conflict give their consent to refer their disputes to an independent person mutually chosen by them for the settlement of the dispute. Whereas, Adjudication is the ultimate legal remedy available in order to settle industrial disputes, often referred to as an independent third party by the government. In addition, Arbitration is voluntary, and Adjudication is compulsory.

Adjudication Disputes

When a dispute arises between the parties, there are several methods of resolving disputes. One option is Adjudication, where a third party reviews the case put by either side and makes an enforceable decision. The kind of disputes resolved through adjudication includes the following:

• Disagreements between private parties, such as single persons, corporations or individual entities
• Disagreements between public officials and private parties
• Disagreements between public officials or/and public bodies
   

For full adjudication, requirements include giving requisite notice to all interested parties and also, providing opportunities for all the parties to have their evidence and arguments heard.

Adjudication Process

The process of Adjudication is employed for settling disputes without turning into lengthy and costly court proceedings. The process is initiated when the event referring to the conflict to adjudication gives composed notice of its objective to do so. It is a dispute resolution process and it allows parties to present their disputes to an independent third party for a decision.

• In the process, the individual or the organization who wishes to refer the dispute to adjudication is called a Claimant, and the individual or organization from whom money is alleged to be owed is called a Respondent, and collectively they present their dispute to a third party termed as an Adjudicator.
• The adjudicator will then consider the evidence provided, and then decide within 30 days of the claimant submitting all the supporting documents. And if the adjudicator orders one party to pay the other party, in that case, payment must be made within ten days of the issuing of the decision.

Conclusion

Adjudication helps the parties in conflict to resolve their disputes. Adjudication is a formalized remedy in order to effectively resolve disputes, settle legal claims and decide a case. The court system provides a way of dispute resolution through the process of adjudication.

Frequently Asked Questions (FAQs)

1. What is Adjudication?

Answer:

Adjudication means pronouncing a judgment on an issue that is disputed.

2. What is an example of Adjudication?

Answer:

An adjudication is the result of any sort of official judgment or decision. For instance, when a judge levies a penalty or a sentence against a defendant in a court.

3. Where does the word Adjudicate come from?

Answer:

Adjudicate comes from the Latin word judicare, meaning “judge”.

4. What is the purpose of the Adjudication process?

Answer:

Adjudication is a formalized remedy for efficiently resolving disputes, settling legal claims or deciding a case.

5. What are the limitations of Adjudication?

Answer:

Disadvantages include time constraints, unenforceability, and limited time to investigate the claim.