Disputes between different parties are common feature in our lives. It happens within families, office, in business, with neighbours, customers, etc. While some disputes are resolved by the involved parties themselves, others are taken to court. Traditionally all major disputes were resolved in court. Of late, however, alternative methods of dispute resolution have come into existence. These out of court dispute resolution are called alternative dispute resolution or ADR. These methods are non-adversarial and less costly than court proceedings. It is also less-time consuming as compared to litigation in court. Given these advantages of ADR, many dispute resolution law firms are increasingly using them to resolve disputes.

Advantages of Alternative Dispute Resolution

Alternative dispute resolution methods have gained a lot of traction in the last two decades or so. ADR is equally preferred by clients, lawyers and judges and there are various reasons for its popularity.

First, there is huge backlog of pending cases in courts. The number of judges is in adequate to handle all the cases, which keeps on increasing by the day. Even if more judges are appointed, there are not enough court rooms to accommodate them. In many case judges themselves stipulate the parties to first try some ADR method before approaching the court.

Second, ADR is a much cheaper option than a court trial. Attorneys charge a substantial amount as fees that may increase as case drags on for a long time. There could be additional expense if an expert witness is involved. Lawyers spend significant amount of time in preparing case files and during trial and it directly reflects in their fees.

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Third, there is less risk in ADR as compared to court trial. A judge or jury decides a case in court, and it may result in unintended outcome. There is no guarantee of favourable outcome in trial. When the disputing parties engage an ADR method, the risk of unfair decision is significantly reduced.

Fourth and most important, ADR proceedings are held in private away from the glaring eyes of the public. As litigation is adversarial in nature, it brings to fore many secrets and embarrassing facts. The media are quick to lap up whatever newsworthy information the y can lay their hands on and publish them as headlines. ADR help parties maintain their reputation and secrets.

Types of ADR

There are broadly three types alter alternative dispute resolution methods: 1.negotiation, 2.mediation, and 3. Arbitration. The difference in these three methods is in the level of involvement of a third party. Choice of a method depends on the level of dispute and how good or bad is the relationship between the parties.

1. Negotiation: direct negotiation generally happens when two or more disputing parties come together to identify and discuss the issues. The parties present their facts and related documents to support their case and come to a mutually agreeable solution. They also agree to accept and abide by the outcome. There is no involvement of the neutral third party and the disputing parties work together to come to an understanding and reach a settlement through dialogue. Negation is best suited for parties who have a cordial relationship and are willing to cooperate.
2. Mediation: mediation is different from negotiation as it involves a neutral third party. Mediation is a kind negotiation which is facilitated by a middle man who does not have any stake in the case. Mediation generally happens in civil cases. The middle-man, also known as the mediator, is a legal professional who is aware of the laws related to the case. He/she helps the parties understand the facts of the case and how strong or weak their positions are. As the mediator is just a facilitator, he/she cannot pass any ruling which means that the outcome of the proceedings is not legally binding; the parties are free to accept or reject the outcome. If the mediation fails, they can approach the court through dispute resolution law firms and intellectual property lawyers in India. If the family mediation Toronto is successful, then the parties sign settlement agreement which binds them to honour the agreed-upon terms and conditions.
3. Arbitration: arbitration is the most organized and complete form of ADR. A neutral third party, known as the arbitrator conducts the hearing and pronounces the judgement. The decision is final and binding on the parties, unless of course the parties have agreed otherwise. The arbitrator is generally a retired judge as they have the knowledge and experience of handling disputes. Arbitration is similar to a trial, except that it is held privately and the disputing parties are not allowed to appeal against the decision. Arbitration is quite common in business disputes.

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Apart from the above mentioned methods there are other forms of ADR which dispute resolution law firms prefer, such as neutral evaluation and mini trial. 

In neutral evaluation both the parties present their case to a neutral evaluator, who is an expert on the subject. After hearing both the parties the evaluator gives his/her opinion on strengths and weaknesses of their arguments which helps the parties to decide what resolution method to opt for.

In mini trial, the parties present their arguments in front of the mediator who then evaluates the facts and advice the parties on the probability of their success if the case goes for trial.