28/08/2026
ADR Glossary Explainer Part 4 | What is an 'independent third party' and why does it matter who they are?
The phrase appears in many descriptions of ADR. An independent third party facilitates the process. An independent third party makes the decision. An independent third party reviews the outcome.
But what does it actually mean — and why does it matter so much who that person is?
An independent third party is someone with no personal stake in the outcome. No relationship with either party that could influence their judgment. No financial interest in the result. No prior involvement in the matter.
Independence isn't just a quality. In dispute resolution, it's a structural requirement. Without it, the process has no credibility and the outcome has no legitimacy.
Independence tells you the person won't be biased. It doesn't tell you they're the right person for the dispute.
• In mediation — the third party facilitates. Skill in managing dynamics and creating space for agreement is what makes the process work.
• In arbitration — the third party decides. The quality of the award depends directly on their legal knowledge and understanding of the subject matter.
• In adjudication — the third party decides. Sector experience, contract knowledge, and speed of adjudication all matter. Expertise isn't optional.
• In expert determination — the third party is appointed for technical expertise. The right expert produces a credible outcome. The wrong one produces a determination both parties will dispute.
Across The ADR Centre's brands, practitioners are selected by invitation only — assessed for independence, expertise, and sector knowledge before joining any panel. When a dispute is referred, the Registrar matches the right practitioner to the specific nature of the dispute.
Independence is the baseline. The right person is the difference.
Questions about how practitioners are selected? Learn more at: https://adrcentre.co.nz/