Alternative Dispute Resolution is an alternative to litigation in which the parties at odds agree to be bound by the decision of an independent and impartial third party. ADR conferences take place because it encourages parties to settle their dispute without going to trial. ADR is usually less formal, less expensive, and less time-consuming than taking the case to trial.
Alternative Dispute Resolution is often much quicker and more cost-effective. It is offered for many different kinds of cases like civil lawsuits. Alternative Dispute Resolution clauses are common in employment contracts because it often saves companies money and bad publicity. Construction, employment, contract, securities regulation, and business disputes are also common examples of cases that use alternative dispute resolution.
ADR is also less expensive, less time consuming, and less formal than trial. ADR may be effective for both parties if they want to informally come to a settlement or outcome without going through a court proceeding.
Arbitration and Mediation are the two most common types of Alternative Dispute Resolution, although negotiation and collaborative law are also widespread. While there are differences between the types of alternative dispute resolution, all share the common goal of avoiding a court trial.
If an agreement is not reached between the two parties then it will go to trial. Since the 1956 Uniform Arbitration Act and revisions in 2000, arbitration agreements and awards are generally enforceable under state and federal laws if an agreement is reached. "Binding arbitration" means that the parties waive their rights to trial and the arbitrator’s decision is final. "Nonbinding arbitration" means that the decision of the arbitrator is not final and the parties can request to go to trial.
A reputable business lawyer can advise you on your options and the best course of legal action helping you to take into account other contingencies with which you may not otherwise be familiar.
Last Modified: 05-01-2018 06:28 PM PDTLaw Library Disclaimer
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