When parties are in a dispute, instead of litigation, they gravitate towards alternative dispute resolution to resolve the dispute. Alternative Dispute Resolution (ADR) has gained momentum in recent years because it offers a time efficient, cost-effective and harmonious approach to resolve disputes.
Here are 5 types of alternative dispute resolution methods:
Mediation is a consensual process where by parties agree to resolve the dispute between them amicably. Mediation will be facilitated by a netrual third party called the mediator. The mediator would facilitate the discussions between the disputing parties with the objective to assist them reach a middle ground to resolve the dispute.
Flexibility: Parties in dispute have control of the mediation in that, if and how the dispute maybe resolved.
Confidentiality: The discussions are confidential and cannot be used by the parties for other purposes such as litigation if the dispute is not resolved.
Preserves Relationships: The collaborative nature of mediation could assists parties in dispute to retain cordiality between them.
Conciliation is similar to mediation. However, the conciliator typically plays a more active role in proposing solutions for the disputing parties.
Expert Insights: Conciliators are often experts in the area of dispute and are able to provide practical and workable solutions to resolve the dispute.
Voluntary: Like mediation, parties have the choice to accept or decline the proposed solutions.
Speed: Faster than litigation, saving time and resources.
In neutral evaluation, a neutral evaluator, often an experienced legal professional, provides an initial assessment of the dispute and opines on the likely court outcome if litigation is pursued.
Early Insights: Parties gain an understanding of the strengths and weaknesses of their case before commencing legal action in the Courts.
Guidance: Will better equip a party to decide on the most appropriate mode to address/resolve the dispute.
Arbitration is available when parties have agreed to resolve any dispute between them by arbitration. The agreement to arbitrate any dispute is usually done even before a dispute arises. In an arbitration, an arbitrator or arbitrators is/are usually appointed by the parties. They will hear the parties’ respective cases before making a decision in the form of an award.
Binding: The decision (award) is binding on the parties. It is enforceable in the same manner as any court awarded judgement.
Confidential: The entire proceeding is confidential.
Expertise: The appointed arbitrators often have expertise in the dispute area.
Finality: Provides a conclusive resolution to the dispute.
In an expert determination, an expert in the specific area of dispute is appointed to provide a binding decision.
Expertise: The decision-maker would be someone who is experienced with a thorough understanding of the dispute and issues revolving the dispute.
Finality: Provides a conclusive resolution to the dispute.
It is essential for businesses to weigh their resolution options when in a dispute.
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