ALTERNATIVE
DISPUTE RESOLUTION

In the world of business, companies make millions of decisions, transactions, and contracts every day. In the vast majority of these daily business activities, the action is concluded without dispute. Sometimes, however, problems may arise. When issues do arise, the parties involved are usually able to amicably resolve any issues on their own.

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But in some instances, there may be a disagreement that resists easy resolution. Traditionally, when companies were involved in a disagreement and couldn’t reach a satisfactory resolution of the dispute, they resolved their differences in the courts, through litigation. Increasingly, however, business disputes are being resolved through some form of Alternative Dispute Resolution.

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This is by design. Almost every contract signed today contains a clause mandating some form of Alternative Dispute Resolution (abbreviated, “ADR”) in the event of a dispute about the contract. ADR has been promoted as an alternative to litigation, because it is less expensive, less formal, proceeds on a faster timeline, and in some types of ADR, allows for more collaborative and creative solutions in disputes. And because Alternative Dispute Resolution is a private form of justice, the existence of a dispute, and the outcome of  its resolution, is kept private and confidential.

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The two types of ADR that most often come to mind are Mediation and Arbitration, but there are other forms of ADR, including a type of ADR that takes place in every legal dispute: Negotiation.