Alternative dispute resolution, often called ADR, refers to ways of resolving disputes outside of a traditional courtroom trial. It offers parties methods that can be faster, more private, and more flexible than litigation.
The two most common forms are mediation and arbitration. In mediation, a neutral person helps the parties communicate and try to reach their own voluntary agreement; the mediator does not impose a decision. In arbitration, a neutral decision-maker hears each side and issues a decision, which is often binding on the parties much like a court ruling. ADR is used in many kinds of disputes, including business, consumer, employment, and family matters.
Key concepts a non-lawyer should understand include the difference between mediation, where the parties keep control of the outcome, and arbitration, where a third party decides; the fact that many contracts contain clauses requiring disputes to go to arbitration; and the idea that a binding arbitration decision is generally final and difficult to challenge afterward. ADR proceedings are also typically more private than public court cases.
People encounter ADR when a contract requires it, when a court encourages or orders it, or when they choose it to resolve a dispute more efficiently. Many consult a lawyer to understand an arbitration clause before signing, or to prepare for and be represented in a mediation or arbitration.
