If you have a legal dispute with another party but want to avoid litigation, you may be considering alternative dispute resolution (ADR). This is a viable legal solution in which the parties work together to find a resolution. They may enlist a third-party neutral to guide the process and ensure that it adheres to the law.
ADR doesn’t work in all situations, but it can be highly effective when it does. Below are some of the main advantages.
Multiple levels of savings
First, ADR offers significant savings for both parties in terms of time and money. The costs are far lower than litigation, and there’s no need to wait for an overburdened court system to address the case.
A confidential process
Unlike many court cases, which become matters of public record, ADR proceedings are confidential. The details of the case remain private, so the public will not have access to what took place.
Lack of appeals
Another benefit of ADR is the general lack of appeals after a decision is reached. In litigation, court rulings are often appealed if one party believes the judge misinterpreted the law, which can lengthen the process. But in ADR, once both parties agree to the resolution, there’s typically no reason for an appeal, and the decision stands.
Autonomy over decisions
Finally, ADR gives both parties more autonomy in the decision-making process. This is very different from going to court, where a judge imposes a ruling that the parties must follow, regardless of whether they agree with it. With ADR, the parties maintain control over the outcome.
When disputes arise, it’s essential to consider all available options, including litigation, ADR and other legal solutions. Be sure you know what legal steps to take.