Alternative Dispute Resolution (ADR)

Understanding Alternative Dispute Resolution (ADR)

  • Fact Understanding - ADR is a mechanism for resolving disputes without litigation. It includes discussion between the parties, negotiation, mediation, arbitration, and conciliation.
  • Types of Disputes - ADR is suitable for civil disputes such as commercial, family, property and employment disputes.
  • Benefits - ADR can be faster, cheaper, less formal, and more flexible than court cases. It can offer privacy and confidentiality, and might preserve relationships between parties.

Different Forms of ADR

  • Negotiation - This is a conversation between the disputants to attempt to resolve their dispute. Lawyers may or may not assist.
  • Mediation - A neutral third party assists in the resolution. This person, the mediator, helps each party to understand the other’s position and moves them towards an agreement.
  • Arbitration - This resembles a court process. An arbitrator hears the arguments on both sides and makes a decision. The decision is legally binding.

ADR Versus Traditional Court System

  • Speed and Cost - Unlike traditional court system, ADR can be faster and less expensive. It can save both time and money for the parties involved.
  • Flexibility - ADR can be more flexible than traditional court hearings. There is often more room to tailor the process to the needs of the parties involved.
  • Confidentiality - Details of ADR processes are not made public, unlike court cases. This can make ADR an attractive option for those wanting to preserve privacy.
  • Outcome Control - Parties often have more control over the outcome in ADR proceedings, especially in mediation, where they actively construct the resolution.

Implications of ADR in Legal System

  • Impact on Courts - Effective use of ADR can reduce the load on overloaded courts, freeing up time and resources.
  • Policy Encouragement - Government and the judiciary both encourage the use of ADR whenever possible. Many courts require parties to consider ADR before proceeding to trial.
  • Legal Precedent - ADR does not set legal precedent. This differentiates ADR from court decisions, which can influence future decisions.