The Early Neutral Evaluation process
Early Neutral Evaluation (ENE) is designed to serve as a basis for further and fuller negotiations, or, at the very least, help parties avoid further unnecessary stages in litigation. It is normally non-binding on the parties, who do not need to accept the evaluation.
The opportunity to use ENE can arise in a number of ways:
- The parties' contract may provide for ENE to resolve any disputes that arise.
- The parties may decide to use ENE to resolve an existing dispute in preference to the system provided by their contract.
- ENE can be chosen as the method of dispute resolution either of specific issues or of all disputes arising under a contract.
Parties interested in using the expertise of a respected evaluator can apply to CEDR to appoint an independent person who expresses an opinion on the merits of the issues specified by them. This opinion is non-binding but provides an unbiased evaluation on relative positions and guidance as to the likely outcome should the case be heard in court.
For more information on the ENE process please see Resources below.
Commercial applications of ENE
ENE has a wide range of commercial applications, including:
- Commodity supply contracts
- Construction and Engineering disputes
- Information communication and technology projects
- Insurance disputes
- Pension rights transfers
- Price adjustments on takeovers
- Rent reviews
- Valuation of shares in private companies
- Valuations of partners' interests in oil and gas field projects
CEDR can assist by:
- Advising you on the most appropriate evaluator for your dispute
- Giving guidance on likely costs
- Appointing the neutral of your choice or selecting one for you
- Providing support and guidance during the process, including arranging document exchange, administrating funds, resolving procedural difficulties and providing support and guidance to the parties and the neutral as required.
- CEDR's fee for providing this service is £3,000 + VAT, shared equally between the parties
- The neutral will be paid fees and expenses, and their rates will vary subject to which expert is chosen. Typically, rates will be in a range of between £250 and £600 per hour.
CEDR Dispute Resolution panel members who can act as evaluators include:
- Loss adjusters
- Queen’s Counsels
- Retired judges