What is ADR?

ADR stands for “alternative dispute resolution,” and is primarily made up of two methods for solving cases: mediation and arbitration. Mediation is a settlement-oriented conference where no one is forced into a settlement or decision. The mediator, who is an unbiased third party, is there to act as an intermediary between parties so they can reach a mutually beneficial settlement. Similar to mediation, arbitration is the settling of a case between parties with the help of an impartial third party, known as the arbitrator. The difference between arbitration and mediation is that the arbitrator issues a binding decision based on the evidence and testimonies of the parties involved, while the mediator in mediation does not issue a decision, but rather helps the parties work toward an agreement.

The Rise of ADR

While arbitration has existed for thousands of years, litigation was seen as the traditional way to resolve disputes for many years until 1925 when Congress enacted the Federal Arbitration Act, providing a judicial backing for awards allocated by arbitrators and arbitration panels. As litigants became overburdened by the time and resources required in civil lawsuits, ADR became more and more popular.  Smaller claims, in particular, became exceedingly difficult to resolve cost-effectively in court and ADR was a relatively low-cost alternative, solidifying it as a preferred method to handle not only small disputes, but large ones as well. Not only were they quicker and cheaper than litigation, arbitration and mediation were seen as more creative and harmonious ways to resolve disputes.

Privacy in ADR and Litigation

Mediation and arbitration are popular alternatives to litigation because of their cost effectiveness, privacy and efficiency. Unlike litigation, arbitration and mediation take place outside of the court room, which saves everyone involved time and money. Many people choose arbitration because nothing is made public as it could be in litigation, which takes place in court and involves several steps that could take years until a final decision is made.

To Learn More about Our ADR Services, Contact Us Today

By choosing ADR services with ARS, you can avoid lengthy court delays and costs while your case gets solved from the comfort of your own office, business or home with our innovative cloud-based system. Our Arb-IT™ software allows for a revolutionary approach to ADR by integrating technology with our team of highly-qualified experts. To learn more about our ADR services and how you can resolve your case efficiently, contact us today by calling 888-934-1777 to speak with one of our experts.