Alternative Dispute Resolution (ADR) is a term that embraces a number of processes that have emerged in order to cope with disputes.
In our previous post; we discussed what is ADR and the main types of ADR. In this piece, we are going to discuss the benefits of ADR.
Going to Court can be very expensive. ADR allows the parties to try to solve a dispute without going to court. ADR is considered to be cheaper than both ligation and arbitration. For instance, in mediation, the parties usually just bear their own legal fees and share mediator’s fees. By contrast, the general principle that applies in civil cases is that the unsuccessful party pays the other side’s costs as well as their own. In most types of ADR methods, each side pays its own costs.
Generally, Court process can be slow. A lawsuit may take time due to the specific rules regarding the process and civil procedure. Therefore, it is very frustrating for the parties that want the dispute to be resolved quickly. ADR increases the likelihood of a quick resolution. Firstly, most of the steps are agreed in accordance with parties’ timetable. Secondly, the delays are rare and can occur only if the parties agree to postpone or, for example, do not prepare submissions for Early Neutral Evaluation on time. On the other hand, delays constantly occur in both litigation and arbitration. For instance, in arbitration, the delays usually occur at the stage when a tribunal is constituted.
Each type of ADR is very flexible. In some types of ADR (such as mediation) the outcome is not binding on the parties. In some cases, ADR allows achieving an outcome that is seen as fair and desired by the parties. Unlike court proceedings, ADR can be shaped by the parties and is considered geographically mobile.
In ADR, parties agree to confidentiality and it usually held on a without prejudice basis (meaning whatever is said in the ADR process cannot be used in open Court before a Judge makes a decision). This is particularly useful for disputes on confidential matters such as commercially-sensitive information, trade secrets, etc. As the process is confidential, the parties can avoid interest from the public, competitors or the press.
ADR is an informal alternative to litigation: the process is outside courts and tribunal. ADR is considered to provide a setting in which each party listens to the other and has an opportunity to tell this side of the story.
Beneficial For Continuing Relationship
ADR is more beneficial for the parties that are looking to continue their relationship. The reason for this is that ADR’s objective is to create an outcome beneficial for both parties.
How Gherson can assist
Gherson litigation team has considerable experience conducting ADR, arbitration and litigation. If you have a potential claim or facing a potential dispute matter, please do not hesitate to contact us for advice, send us an e-mail, or alternatively, follow us on Twitter, Facebook, or LinkedIn to stay-up-to-date.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.