Alternative Dispute Resolution

Types of Alternative Dispute Resolution (ADR)

There are a number of ADR routes that parties to a dispute can take. Just to name a few:

• Negotiation – this can be a simple round-table meeting with all parties in attendance for example. It’s informal and discussions are on a ‘without prejudice’ basis (this basically means that in the event your dispute proceeds to court, discussions had during negotiation stage cannot be used in court as evidence).
• Mediation – a neutral third party acts as a go-between between the parties, who are usually in separate rooms, identifying the issues and exploring options for resolution to facilitate an agreement. They don’t take sides, make judgements or provide advice.
• Arbitration – arbitration is similar to the court process to the extent that an independent arbitrator hears the case and makes a decision which is final and binding on all parties. Some business contracts have an arbitration clause which requires the parties to go through this process in the event of a dispute.
• Conciliation – this is similar to mediation except a third party will actively assist the parties to settle the dispute, by suggesting which points each party should concede.
• Expert determination – this is an informal process and is better served in situations which require technical expertise. An expert is appointed who decides on a technical issue. The expert’s decision is contractually binding on the parties.