Advantages And Disadvantages Of Alternative Dispute Resolution In Law

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.

The use of the court system can result in time and high costs. Some litigation take years to resolve and cost thousands or more in legal fees and related expenses. Alternative dispute resolution (ADR) methods are a non-judicial dispute resolution where disputes are resolved outside of the courts. The major forms of ADR are arbitration, negotiation, mediation, and mini-trial.

Alternative dispute resolution is a highly effective instrument in resolving conflict and attaining justice for individuals in relation to resource efficiency and timeliness through utilising mediation, conciliation and arbitration. Mediation is an exceptionally efficacious informal process of dispute resolution, usually confidential and conducted with the assistance of an

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).

Before going to trial, the parties meet, with their attorneys to represent them, to try to resolve their dis­pute without the involvement of a third party. This is

Arbitration is a method to submit a resolution in an arbitral, rather than a judicial forum. For non-labor issues, arbitration can be a less expensive solution. One example is The Home Owners ' Warranty program. A program which aimed to resolve disputes between homeowners and builders. The program was designed between the Home Owners ' Warranty programs of the National Association of Home Builders. This program started in 1973 as a method of formally resolving disputes through arbitration. The program provided a warranty program, using mediation, and arbitration to resolve differences. Before the warranty program was created, the National Association of Home Builders came to the Federal Mediation and Conciliation Service for advice and assistance on dealing with homeowner disputes. Over the years, the program has expanded across the country through the Magnuson-Moss Bill, assisting the Federal Trade Commission on issuing rules on warranty’s and guaranties. The arbitration occurs while looking at the evidence of a dispute objectively for the best solutions (Barrett, 1985, p. 32).

The requisite credentials of an arbitrator are integrity, impartiality, and a simple requirement to maintain a professional competence that conveys the appearance of violating the prohibition of ex parte communications. Ex parte communication is of primary concern to the arbitration process; as such, the arbitrator should take every precautionary measure, within reason, to abide by the general guidelines, the arbitrations proceedings, and the involved parties. It is appropriate for the arbitrator to respond accordingly to the needs of the parties and make every reasonable effort

Alternative dispute resolution (ADR) is the term used to describe the resolution of disputes inside or outside the legal system, without formal adjudication. It includes arbitration, mediation, conciliation and negotiation. There are problems associated with going to court. These include the adversarial process used to find a winner and loser, which often creates stress for, and increases the division between litigants. The advantages associated with the use of ADR have prompted a debate whether Parliament should make it compulsory for all litigants to first use ADR before they go to court to seek solutions to their differences.

After carefully considering the situation in both plaintiff (Eunice) and defendant (RFYL), arbitration should be an effective Alternative Dispute Resolution in

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

Nevertheless, certain categories of ADR have been named and understood to involve the use of particular means and methods to produce the desired end result. These procedures include: negotiation, mediation, arbitration, med-arb, early neutral evaluation, settlement conference and conciliation to name a few. However this essay will concentrate on mediation as a form of alternative dispute resolution.

A problem that may be associated with mediation is power imbalance. Unfortunately, the mediator is only a third party which is present to assist the disputants with their communication to ensure it does not break down and help them reach a decision; however “the parties are in ultimate control, the mediator should not intervene even if one party has more bargaining power than the other” . This can in some cases result in an unfair agreement. Another adverse side of mediation is that; “basically anyone can hang out a sign and practice mediation” - meaning that mediators do not need to undergo a long period of study to ensure their professionalism and knowledge of dispute resolution. This can be harmful to the system and may result in cases being handled by unprofessional personals.

     Alternative Dispute Resolution or ADR refers to a number of various processes that can be used to resolve legal disputes other than by litigation. Recently, methods of dispute resolution which focus on arbitration, mediation and negotiation as an alternative to adjudication have gained notoriety. This notoriety may have been caused by the public perception that ADR methods are less expensive, more efficient, and more satisfactory than the normal traditional course of litigation. The goals of establishing these processes to resolve disputes as an alternative to more formal legal processes include: 1) to make the regular court system more efficient, less costly and more responsive to the needs of the litigants;

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.

ADR is useful in resolving virtually all genres of disputes by providing speedier, enforceable decisions through Arbitration, Mediation, Early Neutral Evaluation and other hybrid mechanisms. The presence of cost-effective and predictable ADR mechanisms capable of resolving complex disputes help to bolster the confidence of litigants within the country and therefore stimulates trade and investment both internationally and locally.