Alternative Dispute Resolution (ADR)
Alternative dispute resolution (ADR) is the process of resolving disputes without going through the court system. ADR is generally viewed as a way to resolve conflicts more cost-effectively than traditional litigation, and usually involves the services of a third-party mediator. ADR can also be used to supplement the court system, as many settlements and verdicts are made only after going through mediation or other forms of ADR.
There are three main types of dispute resolution in the United States: mediation, arbitration, and a combination of the two, called med-arb.
Mediation is probably the most well-known form of ADR. Mediation involves a neutral third-party mediator attempting to help the parties in conflict reach an equitable resolution. The mediator helps the parties to communicate, negotiate, and resolve their differences, but does not have the power to impose a decision on them. Instead, the mediators goal is to help the parties come to an agreement on their own.
Arbitration is another form of dispute resolution. In arbitration, the parties in conflict agree to submit their dispute to a neutral third-party arbitrator. Unlike a mediator, the arbitrator has the power to impose a decision on the parties. In addition, both parties usually agree to be bound by the decision of the arbitrator, and this decision is usually the last step in resolving the dispute.
A combination of mediation and arbitration is known as med-arb. Med-arb combines both processes into one, and can often times be more efficient than going through each separately. Med-arb gives the parties the opportunity to move quickly through both processes and to come to a more lasting, mutually beneficial resolution.
No matter what type of dispute resolution is chosen, it is important to keep in mind that this process is often time-consuming and can be expensive. It is always best to attempt to first come to an agreement on your own before resorting to ADR methods. Nonetheless, ADR can often be the most suitable way to resolve conflicts in a fair, expedient, and cost-effective manner.
