Alternative Dispute Resolution (ADR) is a term used to describe conciliatory techniques like negotiation, mediation and arbitration that can be employed to settle disputes amicably in lieu of other traditional methods such as litigation.
ADR is a widely acceptable alternative to civil actions as it can be employed to negotiate any type of settlement or conflict between two or more opposing parties. Mediators and arbitrators are experienced legal experts and can effectively resolve conflicts between two disagreeing business partners or disputes between workers’ unions and business owners.
Here’s a closer look at the advantages of alternate dispute resolution over litigation:
1) Confidential
ADR proceedings are usually private and confidential. The parties involved in the conflict can also sign a Non-Disclosure Agreement (NDA) to ensure the privacy of these discussions. This assurance of confidentiality allows the conflicting parties to focus on the details of the dispute instead of dealing with the concerns regarding their organisation’s reputation and public image. This provision of privacy can be especially important while resolving disputes involving the discussion of trade secrets or Intellectual Property (IP) of the respective companies. Hence, it is advisable to consult a corporate lawyer to draft an NDA prior to your ADR discussions to protect the privacy of your organisation.
2) Easy to Execute
This is one of the key advantages of alternative dispute resolution. The different techniques of ADR – negotiation, mediation and arbitration are easy to execute and solely necessitate the counsel of legal experts to execute. This factor can be essentially beneficial for resolving conflicts regarding Intellectual Property which extend across different nationalities.
ADR provides a single method for negotiating these disputes without involving multi-jurisdictional litigation which is not only expensive but also time-consuming. Consult an ADR expert to guide you through the process of ADR and reach an amicable resolution to avoid unnecessary IP litigation.
3) Delivers Effective Results
Unlike court decisions, which can be contested through one or more rounds of litigation, ADR resolves are not usually a subject to appeal. This is because these resolutions are concluded with the consent of all the parties involved in the conflict and keeping in mind the most suitable action for everyone concerned.
If your organisation is involved in a dispute that can be resolved amicably with a settlement, always opt for ADR with the guidance of your legal counsel. You can also consult a corporate lawyer to select the process of ADR ideally suited to your conflict and understand the execution of the process better.
4) Flexible
In the case of ADR, the parties involved in the conflict have much more flexibility to select the procedural laws and the discovery rules regarding the dispute as compared to litigation. The parties concerned have the liberty to choose their method of resolution, the arbitrator or mediator involved and have a greater authority over the resolution than a court ordained legal action.
This also allows the individuals or businesses to focus on the substantial issue of the conflict than the procedural rules involved. As the parties are also free to select their arbitrators, the issue can be resolved with expertise and objective inspection, depending on the skills of the arbitrators involved.
ADR methods like mediation and arbitration not only help your organisation avoid unnecessary expenditure in litigation but also save time and preserve your reputation. If your business is facing a conflict with a client or an employee, consult an experienced law firm to get it resolved speedily and efficiently.