Alternative Dispute Resolution (ADR)

What is ADR?

ADR is a faster, less expensive way to resolve disputes. It is designed to work out what is usually a mutually agreeable resolution to an issue while at the same time avoiding or minimalizing a costly trial.

Who attends the ADR conference?

Attendance is usually required of the parties, their lawyers - if they have them, and the Mediator or Arbitrator. Rarely are witnesses appropriate.

What are the types of ADR?

There are 3 kinds of ADR - mediation, arbitration and case evaluation.

MEDIATION is a voluntary meeting, before or after a lawsuit is filed, with a third Person (mediator) where the parties and the mediator work together with frank discussion in a mutual good faith effort to resolve a disagreement. The parties proceed to litigation and trial if no resolution is reached. The mediator is chosen by the lawyers or the clients if there are no lawyers involved.

ARBITRATION is a process that differs from mediation in that the arbitrator is possessed with the authority to render a binding decision. Arbitration can be agreed upon by the parties or required by law in certain instances. Union/Management contracts and disciplinary matters are a common example. However, all disputes can be arbitrated.

CASE EVALUATION is a court ordered process where all of the involved attorneys prepare a report of the claims and defenses the clients have. The attorneys present their positions to a 3 person panel appointed by the Court and in front of each other. The panel usually then asks the defendant (s) to leave the room to allow a frank discussion with the plaintiff's attorney. Then the Plaintiff side leaves and there is a frank discussion with the defendant's attorney. The panel then discusses the pros and cons of the case in the absence of the lawyers and reach what they consider to be a fair settlement. That decision is then revealed to the lawyers. The parties are usually not present. If both sides accept the panel's decision the case is over. If one or both parties reject the decision, the case proceeds to trial. The rejecting party(ies) must beat the panel's decision by at least 10% or be subject to paying the other side's costs and attorney fees.

Have questions about alternative dispute resolution matters? Click here to read our answers to Frequently Asked Questions concerning alternative dispute resolution.