BUSA LECTURE 11 (copy)

Alternative Dispute Resolution (ADR)

Procedures or devices used to resolve disputes without litigation.

Goals of ADR

Cost-effectiveness, privacy, and efficiency for courts.

Cost-Effectiveness in ADR

ADR is typically cheaper as it requires less time, incurring lower legal fees compared to litigation.

Privacy in ADR

ADR processes are private, keeping sensitive information confidential unlike public court proceedings.

Efficiency for Courts in ADR

Reduces the number of cases courts handle, allowing better allocation of judicial resources.

Negotiation

A direct discussion between parties to reach an agreement or settlement without litigation.

Key outcome of successful negotiation

Typically leads to mutual dissatisfaction where each party gives up something.

Mediation

A process where a neutral third party assists disputants in reaching a settlement.

Important rule in mediation

Anything shared in confidence with the mediator remains confidential and cannot be used in litigation.

Arbitration

A private trial where an arbitrator makes a binding decision on the dispute.

Voluntary Arbitration

Binding arbitration entered into voluntarily, where parties cannot appeal the outcome.

Involuntary Arbitration

Court-ordered arbitration where the losing party may have the option to appeal.

Power Dynamics in ADR

Imbalances in power, such as in employment cases, can skew outcomes in ADR processes.

Recent legislation on ADR

Legislation addressing issues like sexual harassment allows for litigation despite prior arbitration agreements.

Role of ADR

Significantly resolves disputes efficiently and fosters better relationships in business contexts.

Forms of ADR

Negotiation, mediation, and arbitration.