Meaning :
The concept of Alternative Dispute Resolution (ADR) denotes the process in which disputes are addressed and settled outside of the courtroom.
In a more detailed language, ADR refers to the ways in which disputes
are resolved without litigation. These ways may involve negotiation,
arbitration, or mediation.
Types:
The most common types of ADR for civil cases are mediation, settlement conferences, neutral evaluation, and arbitration. Read more about these ADR processes, when they may or may not be appropriate or watch a video demonstration
Mediation: This
kind of ADR makes use of an unbiased third party known as a mediator.
The mediator does not have the right to decide any outcome of a dispute
or compel the disputing entities to agree upon the same. The mediator
working with the disputing entities tries to reach a mutual solution,
which is usually non-binding. The mediation can be mandated by the
courts if necessary, but the entire procedure remains voluntary,
offering the disputing entities the chance to deny the agreement.
Mediation is totally confidential and the entities can control the
process. The disputing entities can even go for litigation after
mediation if they do not agree to the agreement.
Arbitration: This
kind of ADR is somewhat like a non-formal trial and makes use of an
unbiased third party. A decision is issued by the chosen third party
after it hears each side. According to what the disputing entities have
agreed upon, this decision is non-binding or binding. If binding, this
decision is considered to be final and can be legally enforced.
Irrespective of the arbiter is a practicing facilitator, the process of
arbitration is not considered formal since many evidence rules do not
apply here.
Negotiation: This
kind of ADR does not involve any unbiased third party for assisting the
disputing entities to come to a negotiation. The entities work together
and reach a compromise. During negotiations, the disputing entities can
get their lawyers to represent them.
It
is highly recommended to the disputing parties to always try the ADR
process before going for formal litigation. ADR is both times as well as
cost-effective and hiring one of the most reputed dispute resolution
law firms can prove to be a fruitful investment. These firms can help
you in deciding which kind of ADR process is suitable for your dispute.