Alternative Dispute Resolution

Meaning: Alternative dispute resolution (ADR) includes dispute resolution processes and practices which facilitates the conflicting parties to come to a consensus without going for litigation. It is termed as out of court settlements which are usually informal .This method seeks the help of a third party to settle the dispute between the concerned parties. The process takes place faster, cheaper and ensures that the privacy of the parties is safeguarded. ADR provides choices to the parties involved in the dispute to settle their differences in a smooth and less formal manner. The Courts have been facing problems of large number of pending cases, due to large amounts of debts outstanding, taking longer than it should actually take, for passing the judgment. More often than not, the judgments are not satisfactory and cause hassles to both the parties concerned. ADR has been found to be one of the most effective solutions to the problems encountered by the judiciary. ADR mechanisms are being put to good use by Companies and other commercial establishments and have received a good response from the Courts through adulates.

Types of ADR: 

It can be divided into 4 types namely

• Negotiation
• Mediation
• Collaborative law
• Arbitration

Benefits of ADR:

ADR has been used increasingly to settle disputes without having to undergo a lot of formal procedures .The major benefits include

• Appropriateness for settling multi-party disputes
• Adoption of flexible procedures - the process is determined and controlled by the parties the dispute
• Lesser cost involved when compared to the legal proceedings
• Uncomplicated approach to solving disputes among parties
• Third party with proficient knowledge in the subject intervenes to settle the disputes.
• The possibility of arriving at a solution is higher in ADR.
• The disputes are settled at a very rapid pace and the parties are satisfied.
• Pragmatic solutions are being provided according to the needs and requirements of the parties involved.
•  Agreements are valid for a longer duration of time.
• Confidentiality of the facts and documents relating to the case
• The preservation of relationships and the preservation of reputations.

Questions:

• When is it appropriate to use ADR? 
• How do I select the appropriate ADR process for my case?