Alternative dispute resolution (ADR) is any method of resolving disputes without going through the courts. Today, many potential legal disputes get resolved through ADR in lieu of going to trial. While there are different types of ADR, the most commonly used are arbitration and mediation. Others are neutral evaluation and settlement conferences. ADR processes come with several benefits.
Because of the huge number of cases, the court system tends to be overloaded. As a result, it can take months or even years before a case goes to trial. With ADR, resolution can be fast and a settlement or agreement can often be reached within a few days or weeks.
In addition, alternative dispute resolution is not rigid. Unlike a trial date that might change due to a backlog in the court system or a series of motions filed, ADRs are flexible and the dates can be scheduled as the need arises. This flexibility can help speed up conflict resolution.
Through ADR, in a single procedure parties can agree to have an intellectual property claim that is contested in several different countries resolved. This way, they avoid the often complex, expensive, and time-consuming multi-jurisdictional litigation, and the possibility of getting inconsistent results from different courts.
Another advantage is that alternative dispute resolution can be neutral to the language, law, and institutional culture of the disputing parties. This helps avoid any home-court advantage that could be enjoyed by one of the parties in litigation. This is because familiarity with the local processes and applicable law might offer one party significant strategic advantages.
In most cases, unless held in camera, court trials are public proceedings and anyone can access the trial record. On the other hand, the alternative dispute resolution process is not only private, but the records are also confidential. When, through mediation, both parties agree to an amicable settlement or an arbitration award is issued, there will be no public record of what happened during the discussions. For high-profile individuals or entities, this level of privacy can safeguard their reputations.
Court battles, even when they last a short period, can be quite expensive. If the issue is complex, resolving a conflict through the court system can lead to serious financial setbacks for both parties. For example, simply going through the discovery process before the actual trial comes with attorney fees, court reporter fees, and the associated printing and document mailing costs. With alternative dispute resolution, such expenses are avoided and the process of solving a dispute is quicker.
Once a court has delivered its verdict, invariably one side is upset, angry, disappointed, and even bitter. On the other hand, the ADR process tries to utilize every available opportunity to preserve the relations between the two disputing sides. For example, in a civil child custody case, the arbitrator or mediator not only considers the child’s welfare, but also the relationship between the two parents. In commercial disputes, ADR attempts to preserve relationships between employers and employees, or between business partners.
Generally, court decisions can be contested through an appeal to a higher court. With ADR, because both parties directly participate in working out a resolution, they are generally more satisfied (or at least less dissatisfied) with the settlement terms than they might otherwise be. Although the courts might be asked to review the validity of an ADR resolution, only in rare cases do they overturn the decisions or awards granted.
Because of the huge number of cases, the court system tends to be overloaded. As a result, it can take months or even years before a case goes to trial. With ADR, resolution can be fast and a settlement or agreement can often be reached within a few days or weeks.
In addition, alternative dispute resolution is not rigid. Unlike a trial date that might change due to a backlog in the court system or a series of motions filed, ADRs are flexible and the dates can be scheduled as the need arises. This flexibility can help speed up conflict resolution.
Through ADR, in a single procedure parties can agree to have an intellectual property claim that is contested in several different countries resolved. This way, they avoid the often complex, expensive, and time-consuming multi-jurisdictional litigation, and the possibility of getting inconsistent results from different courts.
Another advantage is that alternative dispute resolution can be neutral to the language, law, and institutional culture of the disputing parties. This helps avoid any home-court advantage that could be enjoyed by one of the parties in litigation. This is because familiarity with the local processes and applicable law might offer one party significant strategic advantages.
In most cases, unless held in camera, court trials are public proceedings and anyone can access the trial record. On the other hand, the alternative dispute resolution process is not only private, but the records are also confidential. When, through mediation, both parties agree to an amicable settlement or an arbitration award is issued, there will be no public record of what happened during the discussions. For high-profile individuals or entities, this level of privacy can safeguard their reputations.
Court battles, even when they last a short period, can be quite expensive. If the issue is complex, resolving a conflict through the court system can lead to serious financial setbacks for both parties. For example, simply going through the discovery process before the actual trial comes with attorney fees, court reporter fees, and the associated printing and document mailing costs. With alternative dispute resolution, such expenses are avoided and the process of solving a dispute is quicker.
Once a court has delivered its verdict, invariably one side is upset, angry, disappointed, and even bitter. On the other hand, the ADR process tries to utilize every available opportunity to preserve the relations between the two disputing sides. For example, in a civil child custody case, the arbitrator or mediator not only considers the child’s welfare, but also the relationship between the two parents. In commercial disputes, ADR attempts to preserve relationships between employers and employees, or between business partners.
Generally, court decisions can be contested through an appeal to a higher court. With ADR, because both parties directly participate in working out a resolution, they are generally more satisfied (or at least less dissatisfied) with the settlement terms than they might otherwise be. Although the courts might be asked to review the validity of an ADR resolution, only in rare cases do they overturn the decisions or awards granted.
