History of Online Dispute Resolution

History of Online Dispute Resolution

Bibitayo

The history of Online Dispute Resolution was dated back to the early 1990s hinging on the revolution of the internet. According to Tyler, the development of ODR is essentially divided into four phases to wit: amateur state (1990-1996), 1997-1998 phase, business phase (1999 to 2000), and institutional phase (2001 till date). During the amateur phase, the idea of settling dispute electronically was tested. The outcome of the test gave birth to the development of the first commoditized web portals where ODR services could be rendered. Between 1997 and 1998 ODR developed dynamically and the first commercial web portals that offered services in this area were established. The next phase is characterized with drastic economic development most especially in the information technology services which called for many companies to embark on electronic dispute resolution project. The year 2001 marked the beginning of the fourth phase-institutional phase where ODR techniques were introduced to the administration of the court and other administrative authorities. Therefore first ODR platform (Online Ombuds Office at the Center for Information Technology and Dispute Resolution at the University of Massachusetts) was created by Ethan Katsh and Rifkin.

Through this platform, online mediation was started through email communication which would result in a resolution signed by the parties. Online Ombuds Office also offers mediation services for the auction portal on eBay. In 1999, SquareTrade emerge as the first commercial ODR provider that addresses issues emanating from Business-to-Business, Business-to-Consumer and Consumer-to-Consumer in the US. Here, the online mediation was commenced by filing a complaint form which bears the method of dispute resolution. The other party after accepting the method of dispute resolution communicate his opinion. And where settlement cannot be reached, the matter moves to the next stage where the mediator communicate the parties through email to foster settlement.
Another early ODR portal is CyberSettle. It is an American based ODR service provider created in 1998. The prominent advantage of this portal is that it created specialized network and internet applications that enable a different form of communication. Negotiation is commenced by login in to provide every crucial information such as name, email address and the date the issue ensued.

Then the parties would be invited to participate in an ‘out-of-court blind-bidding process’ specifying the maximum amount that can be claimed. The offer of a claim of value is then put across to the other party for acceptance. The number of the proposal to be exchanged cannot exceed three and until the other party propose a lower or equal value of a claim, they were not disclosed to the other party and when consensus is reached the offer would be mutually presented98. In addition, the portal also offers services to support the mediation by communicating the parties separately without disclosing the content of their individual offers. Today, ODR has gain momentum beyond shores and across borders. This is as a result of the increase in the number of ODR provider we have today. There are more than one hundred ODR provider among which are ODR.NL, Modron, Cybersettle, TRUSTe, Ujuj etc. And the first ODR provider in the whole of Africa is the very recent Court86.