Does it make sense to use alternate dispute resolution?

Whether or not alternative dispute resolution (ADR) makes sense will depend on the situation and the type of ADR you are considering. There may be times when you are required to use alternative dispute resolution, such as if you signed a contract that had an arbitration clause. In other situations, you may choose to find an alternative to litigating your dispute for various reasons. However, to determine if ADR is the right choice for you, you need to weigh the pros and cons carefully. 

Understanding Alternative Dispute Resolution

There are two main types of alternative dispute resolution:

• Arbitration is a binding alternative to going to court. The arbitrator acts in a similar manner to a judge, although he doesn't have all the legal powers of a judge in the court system. The "arbitrator" will hear arguments from both sides and will make a decision that is legally binding on the parties involved. While you may potentially appeal in the event that the arbitration was grossly unfair or if there were procedural problems, generally, the decision of an arbitrator is going to stand and you'll need to abide by it.
• Mediation is a voluntary form of ADR wherein the mediator helps the parties who are disputing to communicate openly and to come to an agreement together.

In addition to situations where arbitration is required (contract disputes with arbitration clauses in the contract), there may be some other times when alternative dispute resolution makes sense. For example, if you are getting a divorce:

• You may want to arbitrate the divorce so all of the details of your financial life don't become court record. Arbitration can be kept private.
• You may want to mediate a settlement agreement, which can be less expensive to having to litigate all your issues in court (and pay the legal fees for all that litigation).

It is important to note, however, that while you don't have to pay for a judge in court, you do have to pay for an arbitrator and mediator. This means if you try mediation and you can't come to an agreement, you've essentially wasted your money. 

Getting Help

If you are thinking about settling a dispute through alternative dispute resolution, it is in your best interests to talk to a lawyer about whether an ADR method will work with your situation or not.