Alternate Dispute Resolution

Parties are turning more frequently, often at the court’s insistence, to alternative
forms of dispute resolution, or ADR. These alternatives are desirable because they
provide three main advantages over a trial. The first advantage is speed. A dispute
may be settled more quickly with ADR. The legal process takes a lot of time, and it
can be months or even years before a dispute may be settled in a court of law. The
second advantage is cost. Because the settlement of the dispute takes less time,
both parties save money in legal fees and trial preparation. The third alternative is
privacy. Whatever happens in court becomes part of the public record. If the parties
settle outside of court, they can incorporate a provision that the dispute resolution
proceedings and terms of agreement will be kept confidential.

Types of alternate dispute resolutions include the following:

Negotiation: The parties themselves attempt to reach a voluntary settlement

agreement.
Mediation: A neutral third party attempts to facilitate an agreement between
the parties.

Arbitration: The parties agree that a neutral third party will hear and decide how
the case should be settled. In these cases, the parties must agree to abide by the
arbitrator’s decision.