Alternative Dispute Resolution
 Alternative Dispute Resolution (ADR) is the name given to several
processes and techniques which parties may use to settle disputes.
ADR is becoming increasingly popular as an alternative to
traditional litigation in a courtroom. The most popular types of ADR
are Arbitration and Mediation.
What is arbitration?
Arbitration is a process in which a neutral third party is chosen
and assigned the task of hearing both sides, and making a final
determination for the parties involved.
The essence of arbitration is that it is an agreement between two
or more parties to try to resolve a dispute outside of the court
system. The parties agree upon a third party as an arbitrator who
will act as a judge and jury. After giving the parties the
opportunity to present their side of the story and to present any
relevant documents or other evidence, the arbitrator will act as
King Solomon to decide who wins and who loses.
There are usually no set rules as to how arbitration is
conducted. It is typically left to the agreement of the parties. To
facilitate the process, though, the parties will oftentimes agree to
use the rules of an established organization like the American
Arbitration Association.
There can be binding and non-binding arbitration. A "binding"
arbitration generally means that the winning party can take an
arbitration award to a court of law and enforce it if the losing
party does not comply with the terms of the decision.
"Non-binding" arbitration refers to a situation where the parties
agree to use arbitration as a forum to try to resolve their
differences, but neither party is bound to comply with any decision
by the arbitrator.
(See research.lawyers.com)
What is Mediation?
Mediation on the other hand, is a process in which an impartial
third party facilitates communication and negotiation and promotes
voluntary decision making by the parties to the dispute. This
process can be effective for resolving disputes prior to arbitration
or litigation. (http://www.adr.org).
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