Advantages Of Alternative Dispute Resolution for Individuals and Businesses

Understanding Alternative Dispute Resolution (ADR)

Legal disagreements are a part of life – whether in individual or business matters. Sometimes those disagreements require the decision of a judge in court (litigation). However, some matters can avoid the courtroom by using Alternative Dispute Resolution (ADR). 

What Is ADR?
ADR encompasses methods of settling a legal disagreement outside of the courtroom. There are several methods including conciliation, negotiation, neutral evaluation, mediation and arbitration. 
 
However, the most common methods are mediation and arbitration, which we will address here.

Types of ADR
Mediation is a type of ADR in which a neutral third party called a mediator helps the disputing parties resolve their disagreement. Usually, mediation is informal and the disputing parties can work together to find a solution. The mediator does not make a final decision or determine who is “right and wrong.” Instead, the mediator helps the two groups come to a voluntary settlement. Learn more about mediation here. 

Arbitration involves a third party who acts as the “judge,” and whose decision is final. During this formal process, the two parties involved submit documents for review, but are not involved in making a decision. 

Benefits for Businesses & Individuals
There are several benefits to ADR for both individuals and businesses. 
 

1. Cost-effectiveness
   ADR is generally more cost-effective than litigation, as methods involved are less formal and time-consuming processes.
2. Confidential
   Court cases are public, but ADR can remain confidential. This can be beneficial for personal and business reasons. 
3. Autonomy & Creative Solutions
   As mediation involves more engagement from both parties, autonomy can be maintained, and creative solutions can be reached. 
4. Flexibility
   Court cases often require both parties to be available at an assigned time and date. ADR can be more easily scheduled for all parties involved.
5. Speed
   As there are fewer people involved, more flexibility in the schedule, and no jury needed, ADR generally takes less time than a court case. 
6. Improved Relationship Outcomes
   Taking people to court often strains relationships between the two parties. ADR methods tend to be more cooperative and less intense than litigation. As a result, the two parties have a better chance of maintaining their relationship. 

Is ADR Right for Your Situation?
ADR can be for both individuals and businesses in a variety of situations. See examples of disputes below.
 
Individual ADR could cover:

• Family matters (like property, divorce, visitation)
• Neighborhood disputes (such as civil conflicts or relational problems)
• Landlord/tenant matters (repairs, rent, evictions)
• Personal injury

 
 Business ADR could cover:

• Contracts
• Partnerships
• Property & land use
• Collections
• Employment
• Debts & loans

 
This list is not exhaustive, but gives a broad range of possibilities.
 
Do you think ADR might be a good option for your dispute – or want legal counsel to determine if it is?

The lawyers at SLN Law can help you decide, as well as navigate your dispute. Contact SLN Law for more information.