ADR Links
Alternate Dispute Resolution
Alternate Dispute Resolution (ADR)
is a term that describes any one of a number of methods that allow parties to develop a
solution to a problem without resorting to traditional methods of adjudication. (That's
just "legalese" for talking out the problems without going to court.) Here are
some short descriptions of a few of the forms of ADR:
Binding Arbitration: A process where a third
party or parties, after listening to the disputant's evidence, decide on a resolution for
a problem. The decision is based on a more or less formal proceeding (complete with
defined rules) and is legally binding on both parties. A sub form of this type is called Baseball
or (Last Offer) Arbitration and is used when the parties want a neutral third
party to decide the terms of a settlement based on the last offers of the respective
parties. The arbitrator is limited to awarding a final settlement within the boundries set
by those final offers.
Conditional Arbitration:
The process here is identical to the process used in Binding Arbitration but is generally
used where a consumer has a dispute with a company or service provider and allows the
consumer to elect to accept or reject the finding of the arbitrator or panel. If the
consumer elects to accept the finding, then the finding becomes legally binding on both
parties. If the consumer elects to reject the finding, both parties are free to pursue
litigation or other ADR methods.
Non-binding Arbitration: The process here is
identical to the process used in Binding Arbitration but the decision is not binding on
either disputant. In this form, even if a consumer accepts the finding, the other party is
still free to pursue or force litigation.
Mediation: This is a rather
informal process based on a cooperative model, where the disputants use a third party
neutral whose job it is to keep the discussions on track and targeted at resolution of the
dispute. As a general rule, the mediator neither decides the issue nor does the mediator
sugest solutions. This method is especially appropriate in solving specific issues between
parties and provides a level of autonomy not offered from most other forms of Dispute
Resolution.
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