Is Alternate Dispute Resolution Right For You?.

This article explains Alternative Dispute Resolution (ADR) as an alternative to resolving disputes through court proceedings. It outlines the differences between mediation and arbitration, the potential benefits of ADR, including confidentiality, flexibility and cost effectiveness, and how parties can use ADR to resolve disputes.

Alternative Dispute Resolutions (ADR) is an umbrella term for issue resolving processes that do not involve court in which an impartial person assists those in a dispute to resolve the issues between them. Two of the most common forms of ADR are mediation and arbitration.

Mediation is a facilitation of without prejudice, non confrontational discussions between parties with the aim of the parties who are involved in a dispute reaching a resolution. The discussions are chaired by a mediation, who is impartial to the dispute. The mediator does not impose a final decision on the parties, instead the mediation resolves by the parties reaching an agreed settlement.

Arbitration is a more formal process. Arbitrations are presided by Arbitrators who ultimately do make a final decision. Arbitration is a quasi court process ultimately presided by the Arbitrator. The advantage of Arbitration is that it is often quicker, cheaper and more accommodating to the parties.

There are a number of benefits that ADR can provide that traditional litigation does not, such as:

• proceedings are confidential;
• the issues are resolved on neutral grounds;
• flexibility;
• ability to appoint an arbitrator or mediator with specific skills and expertise; and
• cost effective.