What is Alternative Dispute Resolution (ADR)?
Alternative Dispute Resolution, or “ADR” for short, is the term used for different ways of solving a strife outside of the traditional court room setting. There are many forms of ADR, but mediation and arbitration are the most common.
Benefits of ADR
- ADR can be cheaper and faster than an official court hearing, but this is not always the case. When mediation or arbitration aren’t successful it just increases the duration and cost of the process.
- There are endless possible outcomes available with ADR that aren’t available in the standard court hearing.
- ADR has the ability to truly resolve an issue through mediator’s actively encouraging the parties in the dispute to come to an agreement with the best possible outcome for both parties instead of simply aiming for a subpar compromise.
- ADR is private between the parties.
Disadvantages of ADR
- An agreement reached in mediation or arbitration does not act as precedent in future cases involving other parties with similar nature.
- You cannot gain a court ruling on your legal rights if you choose ADR and resolve your dispute within the ADR process. In most instances, you will not receive a decision from a court unless the ADR process chosen allows the parties to continue with litigation. Such a result typically occurs if no agreement is reached during mediation or the arbitrator’s decision is not binding.