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Alternative Dispute Resolution
Alternative Dispute Resolution (ADR) in general reIers to processes and techniques oI
resolving disputes that Iall outside oI the judicial process. Some courts now require some parties
to utilize ADR oI some type, usually mediation, beIore permitting the parties' cases to be tried.
ADR is generally classiIied into at least Iour subtypes:
O egotiation participation is voluntary and disputants arrange settlements Ior
themselves.
O ediation a third party Iacilitates a resolution and otherwise assists the parties in
reaching a voluntary agreement.
O Arbitration this is more inIormal and decisions may or may not be binding.
O onciliation
One common element in most oI the ADR procedures with the exception oI negotiation is the
presence oI a person who acts either as the Iacilitator or decision maker. This Iacilitator is
usually a neutral person who is capable oI providing an unbiased opinion.
ADR is useIul in a wide range oI conIlicts, such as commercial disputes, proIessional
liability cases, personal injury matters, insurance problems and Iamily and divorce matters.

Mediation
ediation is a Iorm oI alternative dispute resolution (ADR). It aims to assist two (2) or
more disputants in reaching a voluntary agreement. ediation is an inIormal process in which a
neutral third party assists the opposing parties to reach a voluntary, negotiated resolution oI a
charge oI discrimination.
The decision to mediate is completely voluntary Ior the charging party and the employer.
ediation gives the parties the opportunity to discuss the issues raised in the charge, clear up
misunderstandings, determine the underlying interests or concerns, Iind areas oI agreement and,
ultimately, to incorporate those areas oI agreements into resolutions.
A mediator does not resolve the charge or impose a decision on the parties. Instead, the
mediator helps the parties to agree on a mutually acceptable resolution. The mediation process is
strictly conIidential.
ediators use appropriate techniques and/or skills to open and/or improve dialogue
between disputants, aiming to help the parties reach an agreement with concrete eIIects on the
disputed matter. ormally, all parties must view the mediator as impartial.

Whether an agreement results or not, and whatever the content oI that agreement, iI any,
the parties themselves determine rather than accepting something imposed by a third party.
ediation can apply in a variety oI disputes, such as commercial, legal, diplomatic, workplace,
community and divorce or other Iamily matters

Advantage of Mediation

O The process promotes communication and cooperation.
O It allows the parties, not the court, to make decisions aIIecting their Iuture.
O It promotes positive Iamily relationships by reducing conIlict.
O It is conIidential. There is no public disclosure oI personal problems or Iinances, unlike
litigation where both the trial proceedings, as well as all papers Iiled, are open to the
public.
O ediation usually costs less than litigation.

Disadvantages of Mediation
O ecause the mediator is neutral, he or she cannot personally advise either party. Thus, the
parties must rely on their attorneys to be Iully inIormed oI their options.
O II one party has been domineering during the relationship, the other party may not Ieel as
Iully capable oI expressing important concerns as he or she would iI the lawyers were
present. Having the support of attorneys at mediation is an option but it adds another
layer of expense.

Arbitration
Arbitration is a Iorm oI alternative dispute resolution (ADR), it is a legal technique Ior
the resolution oI disputes outside the courts, where the parties to a dispute reIer it to one or more
persons, by whose decision they agree to be bound. It is a settlement technique in which a third
party reviews the case and imposes a decision that is legally binding Ior both sides.
Arbitration is oIten used Ior the resolution oI commercial disputes, particularly in the
context oI international commercial transactions. The use oI arbitration is also Irequently
employed in consumer and employment matters, where arbitration may be mandated by the
terms oI employment or commercial contracts.
Arbitration can be either voluntary or mandatory although mandatory arbitration can only
come Irom a statute or Irom a contract that is voluntarily entered into, where the parties agree to
hold all disputes to arbitration, without knowing, speciIically, what disputes will ever occur and
can be either binding or non-binding. on-binding arbitration is on the surIace, similar to
mediation. However, the principal distinction is that whereas a mediator will try to help the
parties Iind a middle ground on which to compromise, the non-binding arbitrator remains totally
removed Irom the settlement process and will only give a determination oI liability and, iI
appropriate, an indication oI the quantum oI damages payable.

Advantages of Arbitration
O It is oIten Iaster than litigation in court.
O It can be cheaper and more Ilexible.
O Its proceedings and an arbitral award are generally non-public, and can be made
conIidential.
O Arbitrators oIten work Iaster than a judge to decide disputes.
O Arbitration meetings tend to be less Iormal than court, so parties may Ieel more
comIortable and conIident to speak.
Disadvantages of Arbitration
O It may become highly complex.
O It may be subject to pressures Irom powerIul law Iirms representing the stronger and
wealthier party.
O II the arbitration is mandatory and binding, the parties waive their rights to access the
courts and to have a judge or jury decide the case.
O In some arbitration agreements, the parties are required to pay Ior the arbitrators, which
add an additional layer oI legal cost that can be prohibitive, especially in small consumer
disputes.
O There are very limited avenues Ior appeal, which means that an erroneous decision
cannot be easily overturned.
O The couple gives up their power to decide and leaves their Iate in the hands oI a third
party stranger.
egotiation
egotiation describes any communication process between individuals that is intended to
reach a compromise or agreement to the satisIaction oI both parties. egotiation involves
examining the Iacts oI a situation, exposing both the common and opposing interests oI the
parties involved, and bargaining to resolve as many issues as possible. egotiation takes place
every day in nearly every Iacet oI liIe Irom national governments negotiating border disputes, to
companies negotiating work agreements with labor unions, to real estate agents negotiating the
sale oI property, to Iormer spouses negotiating the terms oI a divorce. Small business owners are
likely to Iace negotiations on a daily basis when dealing with customers, suppliers, employees,
investors, creditors, government agencies, and even Iamily members. any companies train
members oI their sales Iorces in negotiation techniques, and many others hire proIessional
negotiators to represent them in business dealings. Good negotiation requires advance
preparation, knowledge oI negotiating techniques, and practice.
Advantages of egotiation
O It limits the number oI players to those involved in the dispute.
O ost cases settle beIore coming to court or other Iorms oI dispute resolution.

O OIten disputes are resolved by the parties themselves.

Disadvantages of egotiation
O II the viewpoints oI the parties are too distant then progress is diIIicult to achieve.
O One oI the parties may be at a disadvantage depending on the circumstances oI the
matter.
O
Despite historic resistance to ADR by many popular parties and their advocates, ADR has
gained widespread acceptance among both the general public and the legal proIession in recent
years. In Iact, some courts now require some parties to resort to ADR oI some type,
usually mediation, beIore permitting the parties' cases to be tried expressly contemplates so
called "compulsory" mediation; attendance that is, not settlement at mediation. The rising
popularity oI ADR can be explained by the increasing caseload oI traditional courts, the
perception that ADR imposes Iewer costs than litigation, a preIerence Ior conIidentiality, and the
desire oI some parties to have greater control over the selection oI the individual or individuals
who will decide their dispute. Some oI the senior judiciary in certain jurisdictions are strongly in
Iavour oI the use oI mediation and other ADR`s to settle disputes.



Sources
http://www.goodbyecourts.com/arbpage4.html

http://www.beckerlegalgroup.com/a-d-mediation

http://www.negiot.org/negotiation/what-are-the-advantages-and-disadvantages-oI-negotiation-
arbitration-and-mediation

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