What is an Alternative Dispute Resolution

The term ADR (Alternative Dispute Resolution) can be described simply as the procedure through which disputes are settled out of Court. There are 4 major forms of ADR, namely Negotiation, Mediation, Conciliation and Arbitration. In commercial Contracts, Arbitration procedure is common as the preferred Dispute Resolution Mechanism.

Most ADR procedures are generally more cost effective than litigation. The only legal area that ADR is not commonly utilized is Criminal Law. Nevertheless, there are victims of accused persons who chose an ADR procedure and were better satisfied than simply allowing the state to punish the accused for his crimes without any benefit to them.

In ADR sessions, unlike adversarial litigation, ADR procedures are collaborative and allow adequate room for parties to understand each other’s position. Oftentimes, parties are able to propose more beneficial and creative solutions than if the dispute was adjudicated in the Court.

For each ADR Procedure, there is a Third Party with an objective opinion and as with the Arbitration Proceeding; an Award is delivered by the Arbitrator.

The option of ADR is preferred where parties to a dispute desire to retain their business relationship at all cost while setting the dispute that arose in the course thereof.

Precisely, here’s a summarized definition of the various ADR Processes:

Negotiation: A process where parties dialogue in order to achieve a win-win solution.

Mediation: A non-binding collaborative process where parties are assisted to reach an agreeable solution.

Conciliation: Conciliation is a mediation process where the final agreement between parties becomes binding.

Arbitration: This is a process where a qualified and trained Arbitrator listens to parties and peruses relevant documents to determine a decision known as the Arbitral Award.

If you are thinking about trying out the ADR process, Contact our experienced team today. We are able to receive your requests with optimum concentration, and expertise.

We advocate ADR as the best form of dispute resolution mechanism to utilize in today’s world.

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