The common form which is binding on the parties is arbitration under the Texas General Arbitration Act or the U.S. Arbitration Act. Other types of nonbinding ADR procedures can be created by agreement of parties. The mediator is not a decision-maker and has no opinion or interest in the dispute or its outcome. ADR processes tend to be informal, quick, economical, flexible and less traumatic than more formal procedures. Because parties generally participate more directly in resolving the disputes, ADR generally yields practical and creative agreements and more satisfied clients.
Parties tend to wait until shortly before trial to commence serious negotiations.
Earlier settlements save time, money, and emotional expenditure. The ADR process can also aid attorneys seeking an appropriate way to illustrate for clients the practical possibilities and limitations of a case. ADR also provides attorneys the opportunity to advocate a process that is likely to preserve ongoing relationships between parties and lead to creative and practical solutions. Under the 1987 Texas ADR Act, ADR is a confidential and nonadversarial process for constructive negotiations. The ADR neutral, acting as an agent of reality, facilitates negotiations by ensuring that all points of view will be considered, establishing other procedures which free attorneys and clients to focus on mutually acceptable settlements.