Alternative Dispute Resolution (ADR)

ADR is a confidential and voluntary process in which a neutral third party assists affected parties involved in a dispute to resolve their issues.  ADR is an alternative to litigation in court and is less formal, costly and time-consuming.  Most importantly, ADR is non-confrontational and can restore and help preserve relationships.

There are three main types of ADR:
1.  Negotiation,
2.  Mediation, and
3.  Arbitration.

Negotiation
Negotiation is the most straightforward ADR procedure.  In negotiation, parties discuss their conflict to try to agree.  Parties may choose to do their negotiation directly or through intermediaries, such as lawyers or paralegals.

Mediation
In mediation, parties to the dispute will hire a trusted, neutral third party (a mediator) to help resolve their disagreement.  The role of the mediator is to facilitate communication between both parties and guide them toward a mutually agreeable resolution. 

The mediator does not make a "final decision" or make an award for damages; the parties are in control of the outcome.  However, mediation is more expensive than negotiation since the parties must pay for the mediator's services.

Arbitration
Arbitration is similar to mediation because it also involves the assistance of a neutral third party.  Nevertheless, it is more intricate, and you might feel like you are participating in a trial court procedure.

Arbitration may resemble a trial in court in many ways, but it is presided over by one or more private arbitrators instead of judges.  Like a judge, the arbitrator can make a "final decision" or award damages and costs.

The rules under which an arbitration proceeds, including the rules of procedure and evidence, are frequently intended by the parties' agreement.  Since the parties can determine whether the arbitrator's award can be binding or non-binding, a review by the court is limited if it is binding.

Arbitration is the most complex and formal type of ADR; hence there is a tenancy for it to be more expensive than the other two ADR procedures.

SJG Legal can be the netual third party to help you reach a satisfactory resolutiion.