Advantages And Disadvantages Of Alternative Dispute Resolution

Arbitration is the submission of a disputed matter to an impartial person (the arbitrator) for decision. Arbitration is typically an out-of-court method for resolving a dispute. The arbitrator controls the process, will listen to both sides and make a decision. Like a trial, only one side will prevail. Unlike a trial, appeal rights are limited.

Negotiation, mediation, and arbitration are all forms of Alternative Dispute Resolution (ADR) that are alternatives that organizations use to avoid litigation in court.  According to Valenti Law, negotiation and mediation are forms of non-binding ADR, while arbitration is a binding ADR (2011).  Since arbitration is a binding ADR, the arbitrator’s decisions are legally binding and cannot be challenged by either party in the arbitration.  “There are limited grounds for challenging the decision” (Valenti Law, 2011).

Arbitration. Arbitration is the process where a neutral person (arbitrator) first hears out agreements and evidence from both parties and then decides the outcome. The ADR is significant in solving disputes between worker’s union and employers (Radulescu, 2012).

Mediation involves a third party mediator to resolve the dispute. The third party mediator is unbiased and uninterested. This individual usually is a trained professional in mediation and is aware of legal principles that may affect the case. Arbitration is a form of ADR that utilizes a third party decision maker to resolve a dispute; this individual is considered an arbitrator. Advantages of arbitration are the use of decision makers that have expertise in the subject matter. This can help prevent ill decisions by the use of a jury and ensure that the case is being reviewed by a knowledgeable professional. Another advantage of using arbitration is that the resolution both parties lose control of the resolution process. This portrays an act of fairness that can be lost in litigation. In addition, the low costs and privacy involved with using an arbitrator to settle a dispute will save both parties money and prevent the public from seeking information on the topic; thus potentially avoiding negative reception from the public once the settle is complete. The end goal of the parties involved in an alternative dispute resolution is that a settlement is agreed upon. A Settlement involves two parties in a legal dispute that work out their differences and enter into an agreement to resolve the situation. Depending on the circumstances, an agreement could involve monetary reward or simply an

Arbitration is used by many companies to resolve complex resolutions without the use of formal courtrooms. "Arbitration is becoming more common in human resources disputes" (Fallon & McConnell, n.d.). Arbitrations help to resolve a conflict between two parties who cannot agree. Arbitrators do not have opinions regarding the information presented on both sides. It gives the opportunity for both parties to bring valuable information to the table knowing and feeling the outcome will be justifiable. Arbitration is also more cost-effective for the company and the worker, and the results are much faster usually within a few weeks as compared to years if handled through the court system.

As litigation continues to be a time-wasting, costly, distracted, and unsatisfactory practice for dispute resolution, alternative dispute resolution increases in popularity, specifically, mediation and arbitration. Arbitration is a cost efficient substitute to litigation that is the yielding of a dispute to an impartial party in order to receive a final incumbent decision in the form of an award. Arbitration is sensitive, classified, and modeled to be a swift, and inexpensive solution to dispute. Participating parties may include additional terms in the agreement identifying arrangements to their agreements’ arbitration clauses to meet the requirements of their discrete dispute. In summation, arbitration is process that is private, speedy, cost efficient, and customized to the liking of the parties involved.

These alternatives include mediation and arbitration, both involving a neutral third party to assist and resolve civil disputes. Arbitration and mediation are similar in that they are less formal and more abridged than a trial. These two methods of conflict resolution differ in that mediator can not demand the parties to settle their dispute, while the arbitrator decides a winner out of the two parties. In many cases, parties will agree to binding arbitration where the losing party is forbidden from making an appeal to the

The most widely accepted reason favoring commercial arbitration or alternative dispute resolution is the favorable cost of the arbitral process in comparison to traditional litigation costs. The cost of arbitration, when managed efficiently, can be a fraction of the cost of litigation. In a study that compared litigation and arbitration of employment disputes, empirical data indicated that arbitrations were significantly more efficient than litigation, in terms of time management. Several judges have spoken out about the court crisis, including Kevin S. Burke, Chief Judge of the Minnesota’s Fourth Judicial District (Antonio Buti, 2001).

Arbitration is when officials will recommend that an employee or the firm go before a panel that will deal with complaints and customer related issues. Any kind of rulings are considered to be final, with all participants agreeing to abide by these decisions. This is designed to reduce the costs and time associated with litigating these issues. (Greene, 2005)

Arbitration is similar to a court trial. It includes a process of discovery and the presentation of evidence under simplified rules. Arbitrators are much like lawyers. The opposing parties can share one arbitrator or choose to have separate arbitrators who will then choose a third to sit on the arbitral panel. This ADR method is popular in construction and labor disputes, and it has been used in securities regulation; however, many modern

Alternate Dispute Resolution has many benefits serving as a legal substitute for resolving civil disputes. Most courts prefer the proceedings of an ADR as oppose to Litigation. In some counties, the option of ADR must be analyzed before attempting to initiate the proceedings of litigation. Most district courts along with appeal courts will oversee the courts, and will resolve the remaining disputes. Alternate Dispute Resolution is a large part of our legal system, which many citizens rely on to settle civil disputes. ADR has been a part of US legal history since the times of the colonies. Alternate Dispute Resolution, better known as (ADR) in the legal field, was first used in the late 1800’s. ADR was initially used, not to replace or

There are many legal systems and measures that are available to people when they run into problems. "These alternatives generally accelerate the resolution of disputes without the need for initiating or continuing the formal and costly process of litigation. These alternatives are generally referred to as that of alternative dispute resolution (ADR)" (Sherman, 2012). Alternative Dispute Resolution (ADR) comprises the resolution of a matter by a method other than traditional litigation. There are three main kinds of ADR: negotiation, mediation and arbitration. ADR is often preferred over traditional litigation because it involves a less formal atmosphere than the court room and is less expensive and time consuming than litigation. Furthermore, matters can be resolved in private and kept confidential, and the parties can frequently select the decision maker, who will often have commercial or industrial experience. ADR also helps to reduce the caseloads for courts that are way overcrowded (Alternative Dispute Resolution, 2011).

However, eventually both parties are bound to disagree regarding a clause or the collective agreement as a whole, as some clauses can be written in vague language, and interpreting the agreement into a certain situation is not applicable in the full sense, which can also be due to uniqueness of the situation or act. These situation can be difficult to resolve simply between the two parties, and eventually the need for an unbiased and impartial body to decide to how to interpret the rights and clauses to the given situation, and prompt what can be as a fair yet a correct applicability of the clause, it is usually thought in order to get such ruling, the cases are directed toward the courts of law or governmental tribunals. Many organizations and unions will try and avoid to plea their cases to any government affiliated institution and opt out for an arbitrator. Arbitration is a technique used by most unions and organization, it is an option which provide a better benefits in regards to resolve disputes which may include factors such as the duration to which a court or tribunal may reach a verdict may over extend a reasonable time, as courts provide a system to which a judgment can be appealed, which may act as a burden on both unions and organization financially due to the proceeding of the petition, arbitration is a lot quicker regarding rendering a decision, as most of the decision evoked are binding and an appeal process is not available, in addition, some of the

Arbitration is legal technique used to resolve any disputes outside of the courts. Arbitration allows for speedy and cheap resolution of any disputes, the parties involved in a dispute agree to appoint a third person (arbitrator) who will hear their testimonies, and look into the evidence they provide. The arbitrator's decision cannot be challenged in a law court as it is considered final and the parties involved have to accept the decision (Brams & Merrill, 1986). There are only very limited circumstances where the decision of an arbitrator can be challenged, and this is mostly if there can be proof from one of the parties showing that the arbitrator was biased in their decision or ruling. The chosen arbitrator will be an experienced person in the area of the dispute.

Arbitration is an alternative legal dispute resolution process where instead of bringing your legal dispute to a court presided over by an elected judicial official, the dispute is less formally presented to an individual or a panel of arbitrators who are either appointed by the courts or employed by private arbitration firms. Mandatory arbitration clauses typically appear in government contracts, union contracts, consumer contracts and employment contracts. The arbitrators are more likely employees of private arbitration firms nominated or designated by one or more parties.