What is Alternative Dispute Resolution?
Alternative Dispute Resolution (ADR) offers means to settle disputes without litigation or a formal court hearing. Mediation and arbitration are the primary forms of ADR. Mediation involves the engagement of neutrals to facilitate negotiations and settlement between disputing parties.
When conducted properly, mediation provides solutions to disputes that go far beyond the limited win or lose options that litigation mandates. When conducted perfectly, the application of mediation process allows parties themselves to develop and “own” the resolution of their dispute. In arbitration, which most often is the contracted dispute resolution between parties, a neutral party, serving as in effect of private judge, imposes a resolution after reviewing both sides’ positions.
Mediation is often required contractually as a pre-requisite to suit, whether by arbitration or court. An often overlooked fact of arbitration is that the ability to review and overturn an arbitration decision is severely limited, with most if not all of the grounds one expects for appeal of erroneous court decisions having been contracted away in exchange for speed and confidentiality.