Glossary

Alternative Dispute Resolution (ADR)

Apr 5, 2024

What is an Alternative Dispute Resolution (ADR)?

Alternative dispute resolution (ADR) is a process in which parties can resolve disputes out of court. Alternative dispute resolution, also known as mediation, arbitration or collaborative law, is a process that uses a neutral third party (mediator or arbitrator) to help resolve disputes. The ADR process allows parties to explore alternative solutions and reach agreements outside the courtroom.

Benefits of ADR

Alternative dispute resolution can be a great way to resolve disputes quickly and inexpensively. It can also help you avoid the stress of going to court.

  • It is quick: It allows parties to resolve disputes quickly without having to get involved in long, drawn-out legal proceedings.
  • It is cost-effective: Parties are able to reduce their legal costs by using ADR instead of traditional litigation methods such as going through a trial or filing an appeal.

Types of ADR and When to Use Them

The most popular types of alternative dispute resolutions are mediation, arbitration and negotiation. These are different ways to resolve disputes between parties without going to court.

  1. Mediation is a voluntary process in which the parties communicate directly with each other and an impartial mediator to resolve their dispute. The mediator helps the parties identify issues and develop solutions. 
  2. Arbitration is an alternate dispute resolution process in which the parties agree to settle their dispute by an impartial third party. The parties are not bound by any decision made in arbitration, but they can choose to enforce it as a court judgment. 
  3. Negotiation is a process of communication between two or more people or parties to reach an agreement. Negotiation is used in many different types of disputes, including family law, business law, labor relations and international relations. Most disputes can be resolved through negotiation if both parties are willing to cooperate.
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