Alternative Dispute Resolution

Definition

Alternative Dispute Resolution (ADR): The process of resolving disputes without resorting to litigation, typically through methods such as arbitration, mediation, or negotiation.

Purpose

The primary purpose of Alternative Dispute Resolution (ADR) is to provide a more efficient, cost-effective, and less adversarial means of resolving conflicts compared to traditional court litigation. ADR aims to facilitate a quicker resolution, reduce legal expenses, and allow parties to maintain more control over the outcome of their dispute. By using ADR, parties can often preserve relationships and achieve mutually satisfactory outcomes.

Examples of Use

1. Arbitration: In a commercial contract dispute, the parties agree to submit their disagreement to an arbitrator whose decision will be binding and enforceable, similar to a court judgment.
2. Mediation: In a workplace conflict, an impartial mediator helps the employees involved to communicate effectively and reach a voluntary, mutually acceptable resolution.
3. Negotiation: During a divorce, the spouses and their attorneys negotiate terms of settlement regarding property division, child custody, and support, avoiding the need for a court trial.
4. Community Disputes: Neighbors involved in a property boundary dispute use a community mediation service to reach an agreement without going to court.
5. Consumer Complaints: A customer and a business resolve a dispute over a defective product through arbitration provided by a consumer protection agency.

Related Terms

• Litigation: The process of taking legal action through the courts to resolve a dispute.
• Arbitrator: A neutral third party who conducts arbitration and makes a binding decision to resolve a dispute.
• Mediator: A neutral third party who facilitates communication and negotiation between disputing parties to help them reach a voluntary agreement.
• Binding Arbitration: A type of arbitration where the arbitrator's decision is final and legally binding on the parties.
• Non-Binding Mediation: A mediation process where the mediator's recommendations are not binding, and parties are not obligated to follow them.

Notes

• ADR methods are often confidential, helping to protect the privacy of the parties involved.
• ADR can be used in a variety of settings, including commercial, family, labor, and international disputes.
• Choosing the appropriate form of ADR depends on the nature of the dispute, the relationship between the parties, and the desired outcome.
• Some jurisdictions require parties to attempt ADR before proceeding with litigation to reduce the burden on courts and encourage settlement.