Alternative Dispute Resolution

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What is an Alternative Dispute Resolution?

Alternative dispute resolution offers a way for the parties to come to an agreement without having to go to court to argue their case. The majority of civil legal disputes are resolved by some type of ADR, with negotiation being the most popular. In fact, according to some experts, over 95% of all legal claims are resolved amicably before being heard by a judge or jury.

Different Types of Alternative Dispute Resolution

  • In mediation, a third person assists the two (or more) principal parties. A “mediator” is the name given to this person. The mediator will make an effort to engage both sides and help them to a win-win conclusion. Communication encouragement and facilitation are the mediator’s responsibilities. This method encourages original responses to challenging problems because it is far more casual.
  • After hearing the arguments and supporting evidence from both sides, a neutral third party known as an “arbitrator” will decide the case. The presentation is comparable to a genuine trial, but the rules of evidence are more lenient. In general, there are two types of arbitration: binding and non-binding. Arbitration that is binding means the outcome is irrevocable. The arbitrator’s final ruling will be accepted by the parties, who waive their right to a trial.
  • Every day, lawyers bargain with one another. As a case develops, they routinely exchange settlement alternatives. Because it can be conducted without a third party and can consist of as little as a few back-and-forth phone calls, negotiation is perhaps the least expensive alternative dispute resolution method.
  • In order to consider the advantages and disadvantages of both sides of a lawsuit, a settlement conference necessitates that the parties, their attorneys, and a neutral third party (often a judge or another person that the parties agree upon) meet in a conference room. They will make an effort to appraise the claim and calculate a just reimbursement for the associated damages.

The type of alternative dispute resolution that you use, if any, will be greatly influenced by the nature of your claim, the circumstances of your case, and the parties to your litigation.

We are aware that an insurance company won’t always make an offer that even comes close to what your case is really worth, in which case, alternative dispute resolution may not be successful. In these types of situations, the case would proceed to trial.

Benefits of Alternative Dispute Resolution

There are two substantial benefits to alternative dispute resolution: 

  • It is frequently considerably more economical to settle a lawsuit outside of court, especially for insurance companies. Trials can last for days or even weeks, and they demand extensive planning. Even while there is still preparation involved, alternative dispute resolution is less formal and often takes less time. It is also significantly less physically and emotionally taxing for accident victims than going to court.
  • Through alternative dispute resolution, the parties can develop a solution that suits their needs. For instance, during mediation, the parties can design a special solution that meets their respective needs. In front of a judge or jury in court, you do not have that kind of authority or influence. With alternative dispute resolution, decisions are also made on the same day. Although jurors reach verdicts considerably more quickly than judges do, scheduling a jury might take months or even years. You won’t have to wait nearly as long for your case to be properly resolved using alternative dispute resolution.

Contact an Attorney to Find Out If Alternative Dispute Resolution Is for You!

Every case should be approached by good lawyers as though it will go to trial. However, the truth is that in some situations, alternative dispute resolution may be a preferable option to obtain a just outcome.

Always consult with an attorney for legal help when you’re involved in an accident that was not your fault. 

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