What is ADR?
Alternative Dispute Resolution (ADR) is an efficient means of resolving disputes. When litigants or potential litigants utilize ADR it avoids expensive and time consuming litigation trials; when individuals, groups, or nations use ADR it avoids civil strife, economic hardship, or even war.
The most common forms of ADR are mediation and arbitration.
Arbitrations take various shapes and forms. Some arbitrations are governed by the American Arbitration Association, while others are governed by the State Rules of Court andstatutory codes. Some arbitrations are required by contract between the parties, some of these include arbitration agreements between a healthcare provider and a patient, sometimes between parties to a real estate contract, and sometimes a contract is between an insurance company and its insured. Some arbitrations are binding while others are not.
Binding Arbitrations are somewhat more formal but still remain more cost effective than civil litigation. As discussed above, some binding arbitrations are mandated by contract and on other occasions parties may simply decide to resolve their conflict by means of binding arbitration.
Mediation is a voluntary process where a skilled mediator discusses the case with the parties and explores the possibility of settlement. The mediator facilitates the negotiation process between the parties so the parties can reach a solution to the problem.