Alternative Dispute Resolution

What is ADR?

Alternative dispute resolution, or ADR, is a means of reaching a solution to a dispute which does not involve legal action or taking the case before a court. There are many issues which can arise in the course of doing business, and ADR is a useful way of resolving many of them.

The premise of ADR is that of negotiating agreements between parties without forcing the law to intervene in any fashion or even necessarily trying to prove that either side is doing something wrong. Alternative dispute resolution takes many forms. In some, there will be a third-party mediator who ensures that both sides can have their case heard, but, rather than judging one individual or group to be at fault, merely attempts to guide them in solving the problem in a fashion which is satisfactory for all.

ADR can also involve a decision from a private judge who determines who is in the right, usually when the parties agree in a contract beforehand that any disagreements are to be resolved by this kind of ADR. Other types of ADR involve external parties assisting behind the scenes, but allowing the individuals involved to resolve the issues themselves.

The advantages of ADR

Alternative dispute resolution is useful in the business world because many decisions which should be objective and fact-based end up tied in closely with more irrational motives such as emotional attachments and office politics. An external arbitrator brought in to perform ADR can ensure that a fresh perspective is brought to the table, enabling an end to be brought to the problem.

ADR suits a wide variety of disputes, ranging from customer complaints to internal disagreements. Many businesses choose it as their default dispute resolution method, meaning a minimum of lengthy and expensive legal battles. This is why alternative dispute resolution is so popular nowadays.

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