What may happen if a party does not engage in ADR during civil proceedings?

• A. A costs sanction may be imposed on them at the conclusion of the proceedings.
• B. The court automatically awards costs to the other party.
• C. The case is automatically stayed until ADR is completed.
• D. A judge may order an immediate trial without ADR.

Answer: (A)

When a court encourages or requires parties to use ADR, the aim is to push towards settlement and avoid a full hearing. If a party refuses to participate in ADR, they can face cost consequences. A costs sanction means the party responsible for not engaging in ADR may be ordered to pay the other side’s costs arising from the dispute, including costs tied to the ADR process itself, or at least costs from the date the ADR direction was given. This is to deter non-participation and to reflect the extra time and resources wasted when settlement efforts are ignored. The other options aren’t the standard consequence: costs aren’t automatically awarded to the other party simply by not engaging, there isn’t an automatic stay of the case, and the court’s decision to proceed to trial without ADR would depend on circumstances rather than being the usual consequence of non-participation.