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Alternate Dispute Resolution


What is it?

Alternative Dispute Resolution (ADR) is a procedure for settling the disputes without any litigation, such as arbitration, mediation or negotiation

The procedure is usually less costly and more efficient. They are gradually being used in disputes that would then result in lawsuit, including high-profile labor disputes, divorce cases & personal injury claims.

Reason to prefer ADR?

One of the main reasons parties may prefer ADR proceedings is that, unlike adversarial lawsuit, ADR trials are often two-way and allow the parties to understand each other’s situations.
ADR also allows the parties to come up with more creative solutions that a law court may not be legally allowed to impose.

ADR typically includes early neutral evaluation, negotiation, conciliation, mediation, and arbitration.

While the two most common forms of ADR are arbitration and mediation, negotiation is almost always attempted first to resolve a dispute.

The main advantage of this form of dispute settlement is that it allows the parties themselves to control the process and the solution.

Mediation is also an informal alternative to lawsuit. Mediators are individuals trained in negotiations, who bring opposing parties together and attempt to work out a settlement or agreement that both parties accept or reject.

Arbitration is more formal than Mediation and resembles a simplified version of a trial involving limited discovery and simplified rules of evidence.

Prior to the dispute occurring, parties usually enter into a obligatory arbitration agreement or any other form of agreement with an arbitration clause, that allows them to lay out major terms for the arbitration process.

Mediation has also become a significant method for resolving disputes between investors and their stock brokers.

Arbitration has long been used in labor, construction, and securities regulation, but is now gaining popularity in other business disputes.

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