A primary goal of ADR is to avoid the pitfalls of litigation by providing more efficient means of resolving conflicts. ADR encompasses many processes of dispute resolution, both court-sponsored and private. This article discusses private binding arbitration and mediation, the fastest growing alternatives to litigation and those which have the greatest impact on you, the consumer. Versatility is one of the primary advantages of ADR mechanisms. A dispute resolution process can be designed to settle a case to avoid most of the other inherent problems with the litigation system.
Litigation is supposed to be extremely good at finding the truth.
However, litigation's single-minded search for complete disclosure and legal correctness shortchanges other, equally valid goals of a dispute resolution system, such as the need to tell one's story and the need for reconciliation. But these methods do differ radically from each other. Although arbitration is a hearing, the procedural rules are more informal than a court trial. In mediation, there are communication guidelines, but no procedural rules because it is not a hearing, but rather a facilitated negotiation process. A major difference between arbitration and going to trial is that the arbitrator's decision cannot be appealed to a higher court, making the arbitrator's decision binding.