Alterntive dispute resolution: ADR

Negotiation

A process where two parties or their representatives try to reach a compromise informally or formally.

What is negotiation?

Negotiation is two parties, or their representatives, trying to reach a compromise.

Advantages of negotiation

Cheaper, private, faster than court, protects relationships, decisions are flexible.

Disadvantages of negotiation

Not binding, one party may refuse to negotiate or insist on going to court, compensation is usually lower.

Mediation

A dispute resolution process where a neutral third party helps parties to settle their conflict.

What is mediation?

Mediation involves a neutral third party helping the parties to settle their dispute.

Advantages of mediation

Cheaper than court, parties retain control, private, avoids hostility.

Disadvantages of mediation

One party may refuse to mediate or compromise, damages may be lower.

Conciliation

Similar to mediation, but a conciliator plays a more active role in suggesting compromises.

What is conciliation?

Conciliation involves a neutral third party suggesting various compromises between disputing parties.

Advantages of conciliation

Cheaper than court, parties can choose the conciliator, less formal, quicker resolution.

Disadvantages of conciliation

Not legally binding, may not result in resolution, potential for lower settlements.

Arbitration

A process where both parties agree to submit their dispute to a neutral third party for binding resolution.

What is arbitration?

Arbitration is defined as allowing a neutral third party to settle a dispute, and their decision is legally binding.

Advantages of arbitration

Cheaper than court, arbitrator’s decision is final and binding, private hearings.

Disadvantages of arbitration

Process can be formal and complicated, limited rights to appeal, may not suit complex disputes.