What Is Alternative Dispute Resolution And Why Does It Matter?

29 May 2019
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Alternative dispute resolution is a process used to address conflicts that have the potential to become civil court cases. The goal of using an alternative approach is to ensure that a matter does not become adjudicated unless the issues at hand prove to be extremely intractable. In fact, if ADR is a reasonable choice in a situation, a judge may push hard for both parties to consider it and proceed in good faith before humoring a civil case.

ADRs come in four varieties: mediation, arbitration, neutral evaluation, and settlement conferences. Each approach has its virtues and shortcomings, so let's take a look at what you should know about them before reaching out to a firm for alternative dispute resolution services.

Mediation

A mediator comes into a case with the goal of bringing two parties to an acceptable and mutually agreeable outcome. Control over the process rests with the parties themselves. This approach can be effective in situations like disputes between neighbors where both parties need to be able to live peacefully near each other in the future. Mediation is not desirable when one party is resistant to participation or when there is a history of asymmetric conduct in the relationship.

Arbitration

Some disputes require a decision to be imposed from the outside, and these ones often lend themselves to arbitration. Depending on the circumstances, arbitration may be binding or non-binding. In a binding arrangement, the arbitrator makes the final decision, and that's the end of the issue. In a non-binding setup, either party has the right to proceed to trial if they don't want to accept the arbitrator's conclusion.

Neutral Evaluation

With an evaluator involved in a process, both side's arguments are weighed for strengths and weaknesses. An evaluator is often an expert, and they will provide a non-binding decision that's intended to be taken into account when the two parties enter into negotiations. When there are specific issues of expertise that need to be resolved, this approach can be appealing.

Settlement Conferences

A settlement conference may be either voluntary or involuntary. A judge or a settlement officer is appointed to discuss potential resolutions, and such conferences are often called when a matter where damages are sought is scheduled to go to trial. The two parties will evaluate the pros and cons of potential settlements under the guidance of the judge or the officer. There is a risk that a case can still go to trial.