Alternative Dispute Resolution FAQs

1. What is alternative dispute resolution (ADR)?

Alternative dispute resolution is a collective name provided to various methods to deal with disputes without approaching to court.
The most commonly used method in ADR is mediation. Conciliation is another possibility of it. Both the procedures require a neutral third party for encouraging and facilitating a solution to the dispute.

Mediation is considered as the principal method employed in ADR.

2. What are the principal differences between mediation, and arbitration or litigation?

In mediation, all the involved parties are encouraged by a neutral third party to consider their commercial and personal interests, rather than legal rights. The aim is to reach an agreement that provides the best solution to both the sides. The signature to an agreement is legally binding in case of successful negotiations and all parties agreeing for observing the outcome. In case of negotiations not being successful or only partially successful, the outstanding issues can be taken by both the parties to arbitration or litigation, in case they wish.
3. Are there circumstances in which ADR is particularly suitable?

Typically, ADR is cheaper as well as quicker than a court arrangement. Also, alternative dispute resolution procedures being confidential, they are especially useful to resolve disputes on matters that are also confidential. Also, mediation service in is a very good way to deal with disputes where parties wish to have a continuing relationship, as the object of mediation involves creating an outcome to benefit all the parties. Also under the Civil Procedure Rules, generally judges now expect the parties to go for the use of ADR, before they commence any type of court proceedings.
4. What are the principal advantages to using mediation?

You can speed up the settlement with the use of ADR. This implies less cost, time, and stress in comparison to taking matters to court. Furthermore, the parties take the decisions without any need of handing over the control of the decision to a judge or arbitrator. After being successful, mediation produces such results that are overall more satisfactory to both the parties in comparison to those which would have been achieved through the court proceedings. Such results also include outcomes that are not available from litigation. For instance, they may get an apology or a new way of co-operation. It is important to take note that as the process is confidential, it enables both the parties for avoiding unwanted interests from other parties such as press.

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