Reference no: EM133304365

Case: Pam and Kim are sisters and were very close until about six months ago, when Kim failed to pay Pam the agreed price of $1500 for her 10-year-old Ford Focus car.

Kim had bought the car with every intention of paying for it but had lost her job after falling out with her employer. She has not found a replacement job due to the nasty comments and malicious rumours her former employer has made about her around town.

Relations have deteriorated between the sisters to such an extent that Pam has threatened to take legal action to recover the sum due from her sister.

Pam is going through a difficult period too. She is trying to establish a modelling career and is waiting for her first real assignment. She is becoming frustrated at her lack of opportunity and her financial resources have been steadily depleted to such an extent that she now owes money to several creditors.

Kim has just moved back to live at home because she cannot afford to rent her own flat at the moment due to her lack of employment. She has, however, just received a $1200 rental bond refund, which she could use towards paying Pam for the car.

Pam needs money urgently so as to continue the pursuit of her modelling career and would be prepared to accept the sum of $1000 from Kim, if payment was made immediately.
Before reaching an agreement with Pam, Kim receives a text message from her boyfriend, Nat, who is on a backpacking trip. She learns that he is locked up in a Brazilian jail and needs to pay a $1200 fine before the authorities will release him. Kim is distraught and decides to help Nat by telegraphing him the $1200 he needs to secure his release. By assisting Nat, Kim is no longer able to offer her sister any sum towards the payment outstanding for the Ford Focus car.

Pam has been offered her first modelling contract, but it is conditional. The proposed contract is from a shampoo manufacturer, who can see potential qualities in Pam's beautiful hair. The shampoo manufacturer has stated that the contract is dependent upon Pam's hair being groomed to reveal its true natural beauty.

Pam acknowledges that her hair is difficult and that the only person who has been able to successfully nurture and cut her hair to produce its best look is her sister, Kim.

If Pam can secure the contract it will involve travelling to Sydney for a month. There will be constant filming taking place for advertisements and other promotional events, which she will have to attend. Her hair will need constant attention during this period. The hair shampoo company is prepared to pay Sam $100,000 for the month's work.

Question 1: If you were asked to mediate the dispute, describe the different types of mediation which could be used and consider the models which could be used, Which type and model would be most appropriate to utilise in this case. Justify your selection.

Question 2: Provide a comparative analysis of all the possible options on the continuum of Dispute Resolution methods and in what circumstances would each be a preferred approach for resolving the dispute as set out in question 2 above.

Question 3: Do you consider that ADR contributes to the pursuit of justice? Take into account and refer to the various positive and negative factors relating to ADR in providing your answer.