Alternative Dispute Resolution (ADR) refers to any method of settling a dispute outside a courtroom. ADR includes mediation, negotiation, reconciliation, and arbitration. Settling outside of the courtroom has many benefits, including faster settlements, lower costs of litigation, and more control for the parties involved to find a solution.
What Is Alternative Dispute Resolution or ADR?
Alternative Dispute Resolution provides alternative confidential methods of tackling legal disputes, which avoid going to court. The most common types of ADR are mediation and arbitration.
Can ADR Resolve Disputes?
Absolutely. Due to the informality and confidentiality, parties often feel more comfortable cutting to the heart of their arguments. Lawsuits in court often become mired with other issues and formalities that can make the disputes last longer. Mediation and arbitration allow the parties to just sit down and talk to each other to explore a way where all parties’ needs or met or to have a determination decided more quickly, depending on the type of ADR.
When Should You Use It?
Like all legal answers, “it depends.” In some types of cases, being denied access to the courts may result in a loss of your rights or actually make some disputes longer, not shorter. That said, transactions that involve confidential information may benefit from ADR since the disputes are not public information. Many courts have ADR built into their lawsuit timeline as well. Many courts even require that certain types of cases go to non-binding mediation to at least explore all options before continuing ...