Alternative dispute resolution (ADR) refers to a variety of processes that help parties resolve disputes without a trial. Typical ADR processes include mediation, arbitration, neutral evaluation, and collaborative law. These processes are generally confidential, less formal, and less stressful than traditional court proceedings.
Advantages of Alternative Dispute Resolution
There are several benefits to ADR for both individuals and businesses.
- ADR processes are cost-effective because there is no need to hire expert witnesses or attorneys and the process is quicker which reduces the time, thereby avoiding long-drawn litigation costs
- Court cases are public, but ADR can remain confidential. This can be beneficial for personal and business reasons.
- The parties have the freedom to choose their own arbitrator, mediator or conciliator which means that they can select an expert who has experience in the field of the dispute rather than just someone who has technical and procedural know-how.
- As there are fewer people involved, more flexibility in the schedule, and no jury needed, ADR generally takes less time than a court case.
DIFFERENCE BETWEEN DIFFERENT TYPES OF ALTERNATIVE DISPUTE RESOLUTION (ADR) SYSTEMS
|Neutral Third Party-||Adjudicator||Facilitator||Facilitator, Evaluator||Facilitator|
|Nature of the Proceeding-||Legally Binding||Not legally binding||Not legally binding||Not legally binding|
|Level of Formality-||Formal||Informal||Informal||Informal|
|Level of Confidentiality-||Confidentiality as determined by law||Confidentiality based on trust||Confidentiality as determined by law||Confidentiality based on trust|
Arbitration, and mediation operate within very different paradigms. To adopt the most appropriate dispute-resolution strategy for a potential or existing dispute, parties should understand the differences between the procedures and determine which is most appropriate to the circumstances of the conflict.