The Basics of Alternative Dispute Resolution
The Neutral
In ADR, trained, impartial persons decide disputes (arbitration) or help parties decide disputes themselves (mediation).
WHAT TYPES OF DISPUTES ARE SUITABLE FOR ARBITRATION OR MEDIATION?
Alternative Dispute Resolution is useful for solving many types of disputes. Some of the most common ssues that are resolved through mediation or arbitration are:
- Contract disputes
- Commercial and residential landlord/tenant disputes
- Construction issues
- Employment disputes – including EEO issues
- Breach of Contract
- Intellectual Property rights
- Royalties
- Family disputes
Because mediation is a collaborative process, it can also be used for contract negotiations.
Fairness matters.
Alternative Dispute Resolution refers to methods for settling disputes outside of the courtroom. Mediation and arbitration are two Alternative Dispute Resolution methods.
Mediation
Mediation is a voluntary process designed to reach a mutual agreement. Those who use mediation should expect to present their perspective and negotiate to reach a solution that satisfies all parties involved.
Unlike arbitrators and judges, mediators do not make decisions, but they possess the conflict resolution needed to facilitate discussions. The mediator is neutral, working closely with both parties, but not advocating for either.
Mediation differs from litigation. In litigation, there are winners and losers. In mediation, both parties are satisfied with the outcome. Mediation allows for emotional expression and creative problem solving. Mediation’s goals are to satisfy the interests of all parties.
The advantages of mediation include:
- Collaborative process
- Creative solutions can be introduced
- Less expensive than litigation
- Faster than litigation
- Private and confidential
- Focused on the parties’ interests
Arbitration
Arbitration is more economical and more efficient than litigation. And unlike litigation, arbitration can be private and confidential.
In arbitration, the disputing parties present their cases to a neutral third party (the arbitrator). The presentations may include evidence and witnesses. The arbitrator then determines an appropriate outcome. The process is more formal than mediation, but less formal than a courtroom trial.
The advantages of arbitration include:
- Faster. less formal and less expensive than a civil trial.
- The disputing parties can choose an arbitrator, which could be beneficial if specialized knowledge is required to effectively decide the case