Alternative Dispute Resolution (ADR) refers to methods and processes used to resolve disputes or conflicts outside of traditional court litigation.
Get the full solved assignment PDF of IBO-01 of 2024 session now.
ADR techniques are often employed because they can be quicker, less expensive, and less adversarial than going through the formal court system. Some common forms of ADR include:
- Mediation: A neutral third party, called a mediator, assists the disputing parties in reaching a mutually acceptable resolution. The mediator facilitates communication and negotiation but does not impose a decision on the parties.
- Arbitration: In arbitration, a neutral third party, known as an arbitrator, listens to arguments and evidence from both sides and then makes a binding decision to resolve the dispute. Arbitration can be either voluntary or mandatory, depending on the circumstances.
- Negotiation: This is the simplest form of ADR, where parties directly communicate with each other to try to reach a settlement without the involvement of a third party.
- Conciliation: Similar to mediation, conciliation involves a neutral third party assisting the parties in resolving their dispute. However, the conciliator may also propose solutions and offer advice to help the parties reach an agreement.
- Collaborative Law: In collaborative law, each party is represented by their own attorney, and all parties commit to resolving the dispute through negotiation without going to court. If negotiations fail, both attorneys must withdraw from the case, and the parties may then proceed to litigation with new legal representation.
ADR methods offer several advantages, including confidentiality, flexibility, and the ability for parties to maintain greater control over the outcome of their dispute. However, the effectiveness of ADR depends on the willingness of the parties to participate in good faith and the skill of the neutral third party facilitating the process. ADR is widely used in various contexts, including commercial disputes, family law matters, employment disputes, and international conflicts.