Alternative dispute resolution (ADR) is a term used to describe methods of resolving disputes outside of traditional litigation Unlike litigation where the dispute is decided by a judge or jury, ADR is a process where both parties can come together to try and negotiate a mutually beneficial agreement. ADR is often seen as a less expensive and less complex way of solving disputes, making it attractive to parties involved in a variety of disputes.
ADR is a broad term and can actually refer to a variety of dispute resolution mechanisms. These methods include negotiation, mediation, arbitration, and collaborative law. Negotiation is a voluntary process between two parties to try and reach an acceptable agreement without the aid of a third party. It can be informal, such as two people talking, or formal, such as a series of structured meetings, and is often a popular choice when the parties are able to communicate directly with each other. Mediation is a process where a third party (the mediator) is brought in to help facilitate negotiations between the two parties. The mediator is usually a neutral individual and does not have the authority to make a decision on the dispute, but rather assists the parties in reaching an agreement.
Arbitration is similar to mediation but rather than an agreement being reached through negotiations, an arbitrator is appointed to make a binding decision on the dispute. The arbitrator is usually an experienced lawyer or judge who considers the evidence put before them and passes judgment on the dispute. This decision is usually formalised as a contract between the parties and is legally binding. Finally, collaborative law is a newer method of ADR where both sides use lawyers who are trained in collaborative dispute resolution. Lawyers work together to help the parties reach an agreement and to formulate a legally binding contract.
ADR has a number of advantages over traditional litigation. Firstly, it is generally much quicker and less expensive than going to court. Secondly, the parties have more control over the outcome of the dispute as they are actively involved in the process. Thirdly, it is often much less adversarial than traditional litigation as the parties are actively working together to come to an agreement. Finally, it is often a more amicable process as it encourages communication and understanding between the parties.
Here are five of the best examples of ADR:
1. Negotiation: Negotiation is one of the most common forms of ADR. It is relatively simple and can be used to resolve disputes in a wide range of situations. It works best when there is good communication between the parties and the negotiation process is structured and orderly.
2. Mediation: Mediation is a form of ADR that uses a neutral third party to help facilitate negotiations between the two parties. The mediator does not have the power to make a decision on the dispute but rather helps the parties come to an agreement that is acceptable to both sides.
3. Arbitration: This form of ADR involves an arbitrator making a binding decision on the dispute. The arbitrator will listen to both parties and review any evidence that is presented before making a decision. This is a relatively quick process and the decision is usually legally binding.
4. Collaborative Law: This is a newer form of ADR where both sides use lawyers trained in collaborative dispute resolution. The lawyers work together to help the parties reach an agreement and to form a legally binding contract. This is a good option for complex disputes where it may be difficult for the parties to reach an agreement without outside assistance.
5. Ombudsman: An ombudsman is a neutral third party who investigates and resolves disputes between two parties. The ombudsman will firstly review the evidence presented before making a recommendation on how to resolve the dispute. This is a good option for complicated disputes or where the parties can’t agree on an outcome.