ALTERNATIVE DISPUTE RESOLUTION

Alternative Dispute Resolution



Alternative Dispute Resolution

Definition

Any method of resolving disputes other than by litigation. Abbreviated as ADR. Public courts may be asked to review the validity of ADR methods, but they will rarely overturn ADR decisions and awards if the disputing parties formed a valid contract to abide by them. Arbitration and mediation are the two major forms of ADR (Asser, 2004, pp: 23).

Overview

Alternative Dispute Resolution ("ADR") refers to any means of settling disputes outside of the courtroom. ADR typically includes early neutral evaluation, negotiation, conciliation, mediation, and arbitration. As burgeoning court queues, rising costs of litigation, and time delays continue to plague litigants, more states have begun experimenting with ADR programs. Some of these programs are voluntary; others are mandatory (Brown, 2003, pp: 15-69).

While the two most common forms of ADR are arbitration and mediation, negotiation is almost always attempted first to resolve a dispute. It is the preeminent mode of dispute resolution. Negotiation allows the parties to meet in order to settle a dispute. The main advantage of this form of dispute settlement is that it allows the parties themselves to control the process and the solution.

Mediation is also an informal alternative to litigation. Mediators are individuals trained in negotiations, who bring opposing parties together and attempt to work out a settlement or agreement that both parties accept or reject (Cranston, 2000, pp: 12-34). Mediation is used for a wide gamut of case-types ranging from juvenile felonies to federal government negotiations with Native American Indian tribes. Mediation has also become a significant method for resolving disputes between investors and their stock brokers.

Alternative Dispute Resolution (ADR)

There is much legislation which may resolve the dispute between Janice and Croft cakes but as the business of Janice is not already going good so filling a case and confronting the Croft cakes in the court is not a feasible idea that is why its alternative is suggested to her which is called Alternative Dispute Resolution (ADR). Alternative dispute resolution (ADR) is a cost-effective way for settling complaints and conflicts outside the traditional legal system (Davies, 2005, pp: 22-28). ADR is a set of procedures established by a company whereby an employee with a complaint (against the company or another worker) has recourse to in-house resources to settle the disagreement. Instead of taking each other to court, parties work through their differences, first with company management and each other, then with neutral mediators or arbitrators if needed. In order to win this business conflict through ADR she must follow some steps. While the ADR procedures are being designed, a mediation clause must be incorporated into all of the contractual documents, such as contractor agreement and clause about payments.

Types of ADR

Establish an open-door policy

Typically, the first step is the establishment of an open-door policy or grievance procedure, whereby those who have a complaint or grievance can pursue resolution of the problem through progressively higher levels of management. An open-door policy guarantees that all doors are open to both parties (Delaney, 1996, ...