Day: October 22, 2021

Alternative Dispute Resolution

Everything You Need To Know About Alternative Dispute Resolution

In the business world, it is common for two or more companies having a dispute on certain matters. Especially when the matter involves conflicts that stem from disagreement or breaching of contracts. When this happens, taking it straight to court would cost more and a longer time to resolve the problem. That is why most cases of dispute between parties take their problems to arbitrators or special agencies that provide ADR services.


What is it?

Alternative Dispute Resolution

Alternative dispute resolution or ADR consists of various methods that basically resolves conflicts with the assistance of a third party. They are employed by disputing parties who are unable to reach an agreement without resorting to litigation. However, ADR is gradually being used in conjunction with the judicial system to help resolve conflicts. 

Despite the fact that many political parties and their supporters have historically opposed ADR, it has acquired universal acceptability among the public and the legal industry in recent years. In reality, several courts now urge some parties to engage in some kind of alternative dispute resolution (ADR) before their cases may be heard in court.

The three main types of ADR

  1. Direct negotiation

Direct Negotiation is a dispute settlement procedure in which the parties make offers and counteroffers or debate the advantages and disadvantages or merits of their respective positions without the involvement of a third party.

  1. Mediation

Mediation is an alternative conflict resolution method in which an impartial third party, the mediator, arranges a dialogue between the parties to a case in order to encourage consensual dispute resolution prior to the trial.

  1. Arbitration

Arbitration is a method in which a disagreement is presented to one or more arbitrators, who issue a binding ruling based on the parties’ agreement. Instead of going to court, the parties choose arbitration as a private dispute settlement method.


The advantages of alternative dispute resolution

Alternative Dispute Resolution

Cost less with faster results

It generally takes a lot less time to make a final decision than it would if the case went to trial. It also sometimes costs much less money. Moreover, in arbitration, the parties have considerably greater control over the rules that will be used to their argument. In some circumstances, they can opt to use applicable industrial standards, local law, international law, the arbitration service’s own set of rules, or even religious law.

Experts available for any field

A person who is an expert in the relevant topic can also arbitrate or mediate the parties’ disagreement. In a typical trial involving difficult and technical problems that few people beyond the relevant sector understand, a significant amount of time must be spent teaching the judge and jury simply, so they can make an educated judgement.

This significant time sacrificed, frequently converts into a significant financial investment. Both parties may be forced to summon expert testimony, who may demand exorbitant fees for their time. However, if the arbitrator has a background in the appropriate subject, considerably less time will be spent on this, and the parties will be able to move on to the substantive problems of the case much faster.…


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