Finance and Law

Everything You Need to Know About ADR

<p style&equals;"text-align&colon; justify&semi;">With a justice system that cannot accommodate all legal matters placed before it&comma; parties with legal disputes are often encouraged to enter the dispute resolution process&period; It runs parallel with the court system but presents a quicker&comma; easier way of settling certain matters that would otherwise take up the court’s valuable time&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;"><a href&equals;"https&colon;&sol;&sol;newsforpublic&period;com&sol;dispute-resolution-arbitration&sol;">Alternative dispute resolution<&sol;a> &lpar;ADR&rpar; has become popular among litigants seeking to resolve legal matters without resorting to presenting a case before a judge and jury&period; You can hire a mediator or an arbitrator who will be ready to help resolve your dispute&period; Whether you decide to take up the matter on your own and try to strike a deal with the other party or you hire a professional&comma; knowing and understanding how ADR works is important&period; A good understanding of <a href&equals;"https&colon;&sol;&sol;www&period;adrtimes&period;com&sol;abcs-of-adr&sol;" target&equals;"&lowbar;blank" rel&equals;"noopener">ADR terminology<&sol;a> helps you immensely in achieving your goals&period; Here are the key pointers that will explain to you how ADR works&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">What is ADR&quest;<&sol;h2>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">As mentioned before&comma; ADR is a way of bringing a legal conflict to an end with a resolution that both parties agree to without needing to involve the formal judicial system&period; It is gaining popularity in particular legal fields&comma; especially family and insurance law&period; That notwithstanding&comma; ADR can be applied in several other areas&comma; including municipal law violations&comma; housing disputes&comma; and employee-employer conflicts&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">ADR has been gaining popularity because it is a speedy&comma; inexpensive mechanism that allows parties to come to a resolution that might be less conventional and more creative than what a court would rule&period; As the parties engage on a far less formal platform&comma; more understanding of each other’s views is possible&comma; allowing them to make mutually beneficial concessions or compromises&period;<&sol;p>&NewLine;<h2>There are three primary types of ADR<&sol;h2>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Conciliation&comma; mediation&comma; and arbitration&period; What follows is a brief explanation of each&colon;<&sol;p>&NewLine;<h3 style&equals;"text-align&colon; justify&semi;">Conciliation<&sol;h3>&NewLine;<p style&equals;"text-align&colon; justify&semi;">This ADR process is often referred to as facilitation&comma; and the two terms may be used interchangeably&period; A conciliator is a professional third party who facilitates talks between the parties to achieve a settlement both accept&period; Having agreed to conciliation&comma; the judicial system appoints a conciliator to discuss relevant issues with each party&period; They aim to ensure each sees the other’s point of view and will negotiate a successful outcome&period; Conciliation is popular in settling employment law disputes&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Conciliation is a voluntary process&comma; and a client does not have to submit to it if they do not feel it is in their best interests&period; However&comma; many attorneys encourage their clients to utilize conciliation as a dispute resolution mechanism&period; The conciliator weighs each party’s claim and steers them in the direction of a resolution&period; They may even recommend a fair outcome for both parties to consider&period; The resolution reached during conciliation is not legally binding until both parties agree to it and have it reduced into a written settlement agreement that they both sign&period;<&sol;p>&NewLine;<h3 style&equals;"text-align&colon; justify&semi;">Mediation<&sol;h3>&NewLine;<p style&equals;"text-align&colon; justify&semi;">The mediation setup is similar to that utilized during conciliation&period; It is popular for contract disputes&comma; divorce and custody matters&comma; and personal injury claims&period; A mediator is a professional third party with no stake in the case’s outcome&comma; making an objective assessment of each party’s case and its relative merits&period; A mediator has no decision-making authority and cannot impose any decision unless both parties agree to it&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">A mediator listens to both sides of the argument and pinpoints the significant issues arising from a claim&period; From there&comma; mediators assist parties to find common ground and start thinking about mutually beneficial solutions&period; This is an example of ADR at its finest&colon; when parties begin seeing each other’s points of view and start collaborating on a potential resolution instead of adopting an adversarial approach&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">A mediator does not suggest potential solutions&comma; preferring instead to allow parties to come up with them&period; Afterward&comma; a written agreement is produced and signed by both parties&period; The matter is then regarded as resolved&period;<&sol;p>&NewLine;<h3 style&equals;"text-align&colon; justify&semi;">Arbitration<&sol;h3>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Arbitration is often the ADR choice for larger claims&comma; such as class actions against companies&period; These cases involve multiple plaintiffs&comma; multinational corporations&comma; and millions of dollars of potential compensation&period; Arbitration is an excellent alternative to litigation&comma; which could drag on for years and cost a small fortune in legal fees&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Corporations tend to choose arbitration when they know there is a significant chance that they will be held liable but wish to minimize the damages paid&period; When such cases go before juries&comma; they tend to rule in favor of the David who is facing Goliath&comma; and often hand out crippling punitive damages amounts&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">When entering an arbitration process&comma; both parties waive their rights to a trial&comma; undertake to accept the arbitrator’s decision and understand that an appeal is unlikely to succeed&period; In many agreements with banks&comma; insurance companies&comma; and other corporations&comma; clients must often agree to arbitration for any disputes arising from their contract&period; Most arbitrations are binding&comma; meaning that the outcome bears the same weight as a court ruling&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">Legal representation<&sol;h2>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">While clients do not necessarily require legal representation during ADR processes&comma; experts advise them to seek it&period; A lawyer will pick up on an attempt to stonewall a claim or force a client to accept something less than they are owed&period; With their ADR and legal training&comma; attorneys are better placed to gather evidence and present a client’s case cogently using the necessary terminology and legal principles&period;<&sol;p>&NewLine;

Hardik Patel

Hardik Patel is a Digital Marketing Consultant and professional Blogger. He has 16+ years experience in SEO, SMO, SEM, Online reputation management, Affiliated Marketing and Content Marketing.

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