Legal disputes can arise in various ways. When a dispute is legal in nature, people often think that the only option is to fight it out in court. Nonetheless, that isn’t the case.
While the courts can be useful and necessary at times, litigation isn’t the best way to solve every dispute. Alternative dispute resolution (ADR) offers another route. There are several types of ADR including mediation, arbitration, conciliation and adjudication.
Outlined below is an overview of two of the most common types of ADR– mediation and arbitration.
1. What is mediation?
Mediation is a voluntary process that helps parties in a dispute find a resolution. Discussions are facilitated by a neutral third party – the mediator. The aim of mediation is to have all views aired so that a compromise can be reached. A mediator does not rule like a judge, but rather, they will listen and try to encourage both parties to cooperate.
One of the main advantages of mediation is that it is private. Only the mediator, parties to the dispute and their legal teams need to know what is said in sessions. Mediation also tends to be much quicker and cheaper than a court case.
2. What is arbitration?
Arbitration is more formal than mediation, but it still takes place outside of the courtroom. Like mediation, it is also private, but the arbitrator does take on a similar role to a judge. The arbitrator will listen to both sides of the case and come to a final ruling. That ruling is generally legally binding and enforceable.
Arbitration can be advantageous because it is confidential and it is usually quicker and cheaper than a court case.
ADR could provide the perfect solution to your case. Seeking legal guidance will give you a better idea of whether or not ADR will work in your circumstances.