Problem:

1. Lack of Awareness: One major problem with ADR is the lack of awareness among the general public and even some legal professionals. Many people are unfamiliar with the benefits and options offered by ADR leading to underutilization.

2. Unequal Power Dynamics: ADR processes can sometimes be skewed in favor of more powerful parties or those with more resources. This can result in an imbalance in negotiation power and potentially unfair outcomes.

3. Limited Legal Protections: Unlike the formal court system ADR procedures may lack legal protections and enforceability. This can create uncertainty and prevent parties from fully trusting the process.

Prospects:

1. Cost and Time Efficiency: ADR methods typically offer significant cost and time savings compared to traditional litigation. Parties can avoid lengthy court proceedings and associated expenses making it an attractive option for resolving disputes.

2. Better Preservation of Relationships: ADR processes such as mediation often focus on fostering open communication and finding mutually acceptable solutions. This can help preserve relationships between parties unlike adversarial litigation which may strain or damage relationships further.

3. Flexibility and Tailored Solutions: ADR allows for flexible and customized approaches to dispute resolution. Parties have more control over the process and can work together to find creative solutions that meet their specific needs and interests.

4. Privacy and Confidentiality: ADR methods generally prioritize privacy and confidentiality providing a safe and protected environment for parties to share sensitive information and engage in open discussions without the fear of public exposure.