What is Early Neutral Evaluation?

Meaning of Early Neutral Evaluation

'Early Neutral Evaluation' is an ADR process which is preventive in nature, the object of which is to settle the dispute amicably at the earliest stage. It is non-binding, flexible and confidential process in which a person experienced in the subject matter of the dispute is appointed by the parties for 'Early Neutral Evaluation' known as 'Evaluator' at the outset of the dispute. 'Early Neutral Evaluation' provides the parties with an early and confidential evaluation of the merits of a dispute at the initial stage. The Evaluator studies all materials provided to him, performs independent research into the relevant case law, considers presentations carefully, clarifies positions and facts through questioning and then he prepares an evaluation report.

Procedure of  Early Neutral Evaluation

The Evaluator convenes a meeting to listen the parties who outline the key element of the dispute. The Evaluator assesses the merits of case of each party and identifies the main issues to explore possibilities of settlement. If there is no settlement, the Evaluator may assist the parties by making procedural recommendations.

The Evaluator gives a non-binding decision indicating the way in which he considers the dispute would be determined by a Judge or Arbitrator.

'Early Neutral Evaluation' may be conducted without an oral hearing. If the parties so desire, a short hearing can be held to facilitate evaluation. The procedure at the hearing is determined by the Evaluator but witnesses are not normally heard. The parties make short submissions within a time limit set by the Evaluator. Settlement is very often achieved between the parties on the basis of the evaluation. The parties may, if they wish, agree to be bound by the decision of the Evaluator.

The 'Early Neutral Evaluation' process is very useful where the dispute involves a difficult point of law or interpretation of a contract that prevents the parties from successfully conciliating the dispute or otherwise reaching settlement.