Legal disputes are not always resolved through litigation proceedings in a formal courtroom. In many cases, conflicting parties engage in some form of Alternative Dispute Resolution (ADR). ADR is advantageous because it often provides both parties with some control over the process, thereby increasing the odds of long-term compliance.
ADR is an alternative to traditional legal methods to address civil matters. ADR is often more informal, efficient, and cost effective than the trial process. There are several alternative dispute resolution options available to parties to resolve their issues:
Mediation. During mediation, an unbiased third party or “mediator” assists the parties in reaching a mutually agreeable resolution. If the parties reach an agreement, the dispute is resolved by a settlement. However, if the parties do not agree to a settlement, mediation is not binding and the parties may proceed with further legal action.
Arbitration. Arbitration entails the participation of an “Arbitrator” who hears arguments and evidence from both parties and then decides the outcome of the matter. Arbitration may be binding, or nonbinding, and is governed by a combination of statutes and agreed upon rules. An arbitration award may be made enforceable as a court judgment.
Neutral Evaluation. Each party who engages in neutral evaluation has the opportunity to present his or her case to an unbiased person called an “evaluator.” The evaluator then assesses the strengths and weaknesses of each party’s evidence and arguments and issues an opinion regarding how the dispute could be resolved. The evaluation is nonbinding, but it may be helpful in resolving disputes where the parties are unsure of the value of their respective claims.
Judicial Reference. During “judicial reference,” the disputing parties agree to present their case before a retired judge, a neutral attorney or a non-attorney neutral party, as the court’s appointed referee Judical reference may be by agreement of the parties, or by order of the court. The referee’s decision becomes the ruling of the court and if the reference is as to the entire matter, the decision may become enforceable as a judgment.
There are significant advantages to choosing ADR as a means of dispute resolution. Some of the benefits of avoiding a courtroom trial are:
Efficiency. ADR methods typically address and resolve disputes in a more expeditious manner than trials. ADR participants are encouraged to initiate the process early to avoid protracted negotiations.
Cost considerations. Not only will a timely resolution to the conflict enable the parties to move forward, but in many cases it will also minimize legal expenses.
Flexibility. Unlike traditional legal resolution methods, certain ADR methods can provide flexibility by allowing parties to select the rules that apply to their dispute. For example, they may choose to implement relevant industry standards, U.S. law, foreign law or a particular set of rules employed by the arbitration service provider.
Privacy. ADR allows parties to resolve their disputes in a more private environment. Moreover, certain ADR proceedings are completely private and confidential.
If you are pursuing legal action or are interested in exploring your options, including learning about whether ADR is a viable option for you, contact Shane Coons at 949-333-0900.