People have shifted to the ADR method for solving their legal issues with time because of a few added advantages over traditional litigation. But, what is this ADR, and how are people benefiting from it? Basically, Alternative Dispute Resolution (ADR) is a procedure adopted by many parties to solve their legal disputes without any trial or to come to an out-of-court settlement. ADRs aim to derive outcomes between different parties without implying any legal action.

Public courts could be asked to review the validity of ADR, but once the parties have agreed on a valid contract, hardly anybody questions their choices and decisions.

The most common forms of ADR for civil cases are mediation, negotiation, and arbitration. Let's discuss these methods more.

Negotiation

It is the foremost mode of dispute resolution, allowing parties to meet to settle their differences. Being less formal and more flexible, negotiation helps the parties to keep a direct hold of their dispute. The involved parties have to reach an acceptable compromise by themselves as there is no third party involvement in such resolutions until the party decides to have some ADR specialists.

Mediation

Like negotiation, mediation is also an informal method of dispute resolution involving impartial mediators, which helps the parties solve in unison. A typical mediation starts with both the parties communicating their stories in the presence of the mediator, who then allows them to identify the issue and reach a good outcome.

Arbitration

Arbitration is the most formal method of resolving a dispute which gives the power to the panel of arbitrators or a single arbitrator, depending on the conflict, to decide for the parties. Each party can present proofs and arguments at the hearing, and there isn't, however, any facilitative discussion between the parties.

Arbitration is based on the parties' permission, allowing them to enter into a binding arbitration agreement or any other type of agreement with an arbitration clause that lays out the essential terms of the arbitration procedure (number of arbitrators, arbitration forum, arbitration rules, fees, etc.).

Parties might petition a court to resolve a dispute if they still have disagreements about specific terms before engaging in an arbitration agreement.

Apart from these, neutral evaluation, settlement conferences, and community dispute resolution programs are other methods of resolving a dispute outside the court. But again, why do many leading law conferences like the Law 2.0 Conference talk so much about it? Why are these ADRs gaining so much popularity among the people? Here’s why:

• Financial Rescue

  Legal proceedings require a lot of money and time, which could be resolved by opting for ADRs, which help the companies and individuals settle at a convenient pace. This can be one of the reasons why people are shifting to ADRs.

• Preserve Relationships

  Litigation might impact relationships, but with alternative dispute resolutions, people can still think of keeping their relations by reaching a satisfactory solution in an amicable manner. The dispute remains between the dispute parties, mediators, and sometimes the arbitrators but all look for a win-win kind of solution, making it easier to retain the relationships longer.

Conclusion

These are the few methods and benefits which have made it possible for people to consider ADRs. But, you can always learn more about recent developments in ADR by attending upcoming international law conferences like the Law 2.0 Conference.