Alternative Dispute Resolution
Alternative dispute resolution (ADR) is a faster, cheaper, and less formal method of resolving disputes without traditional litigation. The most common forms of ADR are mediation, arbitration, and collaborative law. All of these methods involve an independent third party or parties that assist the two involved parties in creating an effective solution to their dispute, as opposed to relying on a court or presiding judge to do so.
Mediation is a type of ADR in which an impartial outsider, known as a mediator, helps the sides negotiate a settlement. The objective of mediation is to bring the parties to an agreeable outcome that is mutually beneficial. A mediator facilitates the dialogue between parties, giving each side the opportunity to express their point of view, grievances and objectives more clearly. Mediation is voluntary, meaning both sides must choose to enter into it with the intention of resolving their dispute and are not coerced into the process.
Arbitration is also a form of ADR. Arbitration is similar to a trial, in that both sides present their arguments, but it is conducted in a less formal setting than a court, under the auspices of a neutral third party, called an arbitrator. The arbitrator renders a legally-binding decision, however, the process is less adversarial, faster and less costly than taking a case to a court for trial.
Collaborative law is an ADR process wherein lawyers represent each party, but no one files a lawsuit or goes to court. Instead, the parties commit to resolving their dispute with negotiated solutions that are reached collaboratively instead of litigating the matter. Participants are expected to be open with each other, to exchange all relevant information, and to abide by any agreements reached.
Alternative dispute resolution is often used in legal settings. It offers a faster, less expensive, and more personalized approach to settling disputes than going through the public court system. Parties often report better outcomes in terms of satisfaction and resolution when engaging in ADR. Additionally, certain disputes that are difficult or sometimes impossible to resolve in court can be addressed and divided through alternative dispute resolution.
When parties engage in ADR, their legal rights and remedies are not necessarily waived. Instead, the use of ADR allows parties to craft effective solutions for their dispute, taking into account the unique needs of all involved. It also keeps the focus on achieving a fair resolution, instead of merely winning a lawsuit. In short, alternative dispute resolution is being used more and more as an effective way to resolve conflicts, reduce costs, and avoid lengthy, expensive legal proceedings.
