Alternative dispute resolution, or ADR, is an umbrella term used to describe all forms of dispute resolution that take place outside of a formal legal setting such as a courthouse. This does not mean the results of ADR are not legally binding – in several cases, particularly arbitration, parties are legally obliged to abide by the decision made by the arbitrator.
Dr Edgar Paltzer provides tactical and strategic negotiation support in disputes as part of his legal practice. There are many benefits to exploring ADR before heading down the litigation route, and in most cases the courts will want to see evidence of some attempts at negotiation before a dispute case comes to court.
Lower Costs
In most cases, ADR will be significantly less expensive than litigation when it comes to resolving issues. Court fees and lawyer’s fees can add up very quickly, even if the issue is resolved quickly. Costs for ADR can vary greatly depending on the route chosen, the complexity of the case and how long it takes to resolve. However, most people will find the costs are lower than with litigation.
Less Hostility
People who choose to work with a mediator or other ADR professional are likely to be less hostile towards each other than those who proceed directly to court. With ADR, it is a given that both parties are actively pursuing an outcome that will benefit both sides, rather than an out-and-out victory. The whole purpose of negotiation is to reach a compromise, not to win.
Faster Resolutions
The speed at which any dispute is resolved will naturally depend on the complexity of the case and the willingness of the involved parties to compromise. However, ADR leads to faster resolutions in almost all cases of dispute, meaning both parties can put the issue behind them quicker.
Confidentiality
A court room is a public sphere and therefore any dispute taking place in a court room may become public knowledge. Most forms of mediation and arbitration take place privately behind closed doors, preserving the privacy of both parties.
Flexibility
With ADR, each party has the opportunity to present their own case in their own words and express the outcome they would prefer. While the court will follow the letter of the law, a negotiator is able to account for personal feelings from each party as well as the facts when making a decision.