Alternative dispute resolution methods, which include mediation and arbitration, are cost-effective methods for resolving many legal disputes. These processes are often faster than traditional court hearings, and they come with significant benefits for both sides.
When a case goes through the traditional court process, court filings and records of proceedings become part of the public record. This means that sensitive information, personal disputes and other issues that might damage reputations become public knowledge.
By using alternative dispute resolution methods, you can avoid that public record. The process takes place outside of public courtrooms. Mediation sessions and arbitration hearings are typically held in private settings, with only the involved parties, their representatives and a neutral third party present.
How confidentiality works
In mediation, confidentiality is often governed by laws and the mediation agreement itself. Parties usually agree in writing that discussions, offers and disclosures made during mediation can’t be used later in court if the dispute isn’t resolved. This allows for open, honest dialogue aimed at finding common ground without fear of public exposure.
Arbitration also provides a private forum, though the level of confidentiality can depend on the rules of the arbitration provider and the parties’ agreement. Unlike court judgments, arbitration awards aren’t automatically filed in public records unless enforcement is sought through the courts.
Using alternative dispute resolution methods to handle contentious matters is often a strategic move. It’s critical to understand how the process you’re entering into will work and what you may expect as the outcome. While there aren’t any guarantees when you use alternative dispute resolution, preparing for the process may be beneficial.