What is Alternative Dispute Resolution?

By Amisha 14 Minutes Read

ADR stands for Alternative Dispute Resolution; some people call it “Appropriate” Dispute Resolution. It just means finding an alternate way to resolve your dispute without browsing the court process. Alternative Dispute Resolution (ADR) is the procedure for settling disputes without litigation, such as arbitration, mediation, or negotiation. ADR procedures are usually less costly and more expeditious. They are increasingly being utilized in disputes that would otherwise result in litigation, including high-profile labor disputes, divorce actions, and personal injury claims[1]. Alternative dispute resolution (ADR), or external dispute resolution (EDR), typically denotes a good range of dispute resolution processes and techniques that act as a way for arguing parties to return to an agreement in need of litigation: a collective term for the ways in which parties can settle disputes, with the assistance of a 3rd party.

However, ADR is increasingly being adopted as a tool to assist settle disputes alongside the court system itself. Despite historic resistance to ADR by many popular parties and their advocates, ADR has gained widespread acceptance among both the overall public and therefore the bar in recent years. In fact, some courts now require some parties to resort to ADR for some type of disputes, usually mediation, before permitting the parties’ cases to be tried (indeed the ecu Mediation Directive (2008) expressly contemplates so-called “compulsory” mediation. This suggests that attendance is compulsory, not that settlement must be reached through mediation). Additionally, parties to merger and acquisition transactions are increasingly turning to ADR to resolve post-acquisition disputes.

Alternative Dispute Resolution (“ADR”) refers to any means of settling disputes outside of the courtroom. ADR typically includes early neutral evaluation, negotiation, conciliation, mediation, and arbitration. As burgeoning court queues, rising costs of litigation, and time delays still plague litigants, more states have begun experimenting with ADR programs. a number of these programs are voluntary; others are mandatory.

While the 2 commonest sorts of ADR are arbitration and mediation, negotiation is nearly always attempted first to resolve a dispute. The most advantage of this type of dispute settlement is that it allows the parties themselves.  The idea of Peace promotion through Elective Question Goals (ADR) has presented another instrument of contest goal that’s non-antagonistic. A contest actually lies in inter parts and therefore the equity allotment framework in India has discovered a choice to Ill-disposed suit as ADR Component.

New techniques for contest goals, for instance, ADR encourage gatherings to manage the elemental issues in question during a more financially savvy way and with expanded viability. Also, these procedures host the upside of giving gatherings the prospect to decrease antagonistic vibe, recover a sense of control, gain acknowledgement of the result, resolve struggle during a tranquil way, and attain a more prominent feeling of equity in every individual case of control of the method and therefore the solution.

These processes  often want to solve any sort of dispute, including but not limited to[2]:

  • Family Law Disputes: This includes child custody, divorce proceedings, and support payment order modifications
  • Neighbor Disputes: This includes frequent noise ordinance violations and issues with Homeowners’ Associations
  • Workplace Disputes: Some samples of workplace or employment disputes include wage and hour disputes, and workplace harassment;
  • Business Disputes: Examples include contract disputes and business debt;
  • Housing Disputes: Examples include a landlord failing to take care of a habitable residence and housing discrimination;
  • Personal Injury Disputes: Examples include medical malpractice cases and automobile collision cases;

Methods of ADR:

Mediation[3]:

A sort of alternative dispute resolution, whereby parties plan to resolve their differences without getting tio court. Some court systems utilise voluntary or compulsory mediation, especially in family matters. Mediators are trained within the necessary skills and a few are lawyers and a few aren’t. Often the results of a mediation are going to be encapsulated in legal form to stop the deal being unstitched. It’s utilized in disputes as varied as child custody and international disputes. In mediation, an impartial person called a “mediator” helps the parties attempt to reach a mutually acceptable resolution of the dispute. The mediator doesn’t decide the dispute but helps the parties communicate in order that they can attempt to settle the dispute themselves. Mediation leaves control of the result with the parties.

Arbitration:

In arbitration, a neutral person called an “arbitrator” hears arguments and evidence from all sides then decides the result of the dispute. Arbitration is a formal attempt to solve the disputes, but the rules of evidence are quite relaxed. Arbitration could also be either “binding” or “nonbinding.” Binding arbitration means the parties waive their right to an appeal wh agreeing to comply with the  arbitrator’s decision as final. Generally, there’s no right to appeal against an arbitrator’s decision. Non-binding arbitration means the parties are allowed to proceed for an appeal  if they   do  not accept the arbitrator’s decision.

Arbitration is  a well-established and widely used means to solve disputes. It’s one among several other means of Alternative Dispute Resolution, which give parties to an issue with a choice besides traditional litigation.

There are several basic differences between mediation and arbitration. The main difference is how they both come to an end. In arbitration, the arbitrator pronounces the verdict ; while in mediation, the mediator encourages the  parties to return to a mutually agreed decision among themselves. Mediation can also end if the parties are at the deadlock. Arbitration is best for cases where the parties want another person to decide the result of their dispute for them but would really like to avoid the courts associated formality, time, and expense of an appeal. It could  be  appropriate for complex matters where the parties need a decision-maker who has training or experience within the material of the dispute. mediation could also be particularly useful when parties have a relationship they need to preserve. So when relations, neighbors, or business partners have a dispute, mediation could also be the ADR process to be used. Mediation is additionally effective when emotions are coming within the way of resolution. An efficient mediator can hear the parties out and help them communicate with one another in an efficient and nondestructive manner

Med-Arb[4]:

This type of ADR is one during which an arbiter starts as a mediator, but should the mediation fail, the arbiter will impose a binding decision. Med-arb may be a mixture of mediation and arbitration that pulls from the advantages of the two.

Mini Trial[5]:

A mini trial isn’t a formal method for resolving a dispute because it may be a settlement process. Each party presents their highly summarised case. At the top of the mini trial, the representatives plan to settle the difficulty. If they can’t, an impartial advisor can act as a mediator, or declare a non-binding opinion regarding the likely outcome of the difficulty getting to trial. Mini trial may be a unique ADR method, because it often comes after formal litigation.

Negotiation[6]:

This type of ADR is usually overlooked due to its simplicity. In negotiation, there’s no impartial third party to help the parties in their negotiation, therefore the parties work together to return to a compromise. The parties may prefer to be represented by their attorneys during negotiations. Negotiation may be a method by which individuals settle differences. It is a process by which compromise or agreement is reached while avoiding argument and dispute.

In any disagreement, individuals understandably aim to realize the simplest possible outcome for his or her position (or perhaps an organisation they represent). However, the principles of fairness, seeking mutual benefit and maintaining a relationship are the keys to successful outcomes.

The process of negotiation includes the subsequent stages:

  • Preparation
    • Discussion
    • Clarification of goals
    • Negotiate towards a Win-Win outcome
    • Agreement

Implementation of a course of action:

  • ADR has proven successful in clearing the backlog of cases in various levels of the judiciary – Lok Adalats alone have disposed of more than 50 lakh cases every year on average in the last three years.
  • But there seems to be a lack of awareness about the availability of these mechanisms.
  • The National and State Legal Services Authorities should disseminate more information regarding these, so they become the first option explored by potential litigants.[7]

7. Structured Negotiation:

Structured negotiation is a type of collaborative and solution-driven alternative dispute resolution that differs from traditional ADR options in that it does not rely on a third-party mediator and is not initiated by a legal complaint. The process is often implemented in cases in which a party or parties seek injunctive relief. Structured negotiation has been used to arrange agreements that typically arise from would-be Americans with Disabilities Act (ADA) legal complaints. The technique can be contrasted with certain types of lawsuits often referred to as “drive-by lawsuits” where a long string of lawsuits about the ADA are filed publicly by a single lawyer and settled quickly and confidentially, a practice which can undermine the struggle to adopt more inclusive accessibility practices.

Structured negotiation was first used in 1999 to settle the first legal agreement in the United States in which Citibank agreed to install Talking ATMs, and was quickly followed by similar agreements with several other financial institutions, including Bank of America and Wells Fargo. The Bank of America agreement in structured negotiation in 2000 was the first settlement in the United States to reference the Web Content Accessibility Guidelines (WCAG). Subsequently, structured negotiation has been used to settle various digital disability access and disability rights agreements with a variety of American businesses, universities, and local governments. Structured negotiation has also been used in other civil rights resolutions to alter business practices, including a policy by the Lyft ride-sharing service regarding the acceptance of LGBTQ passengers[8].


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