Before a lawsuit is filed, ADR can be used to settle a dispute without expending court costs and entering into an extended legal battle. ADR can also be employed during the course of the litigation to attempt to resolve the case once enough information has been gathered so that each party has had the opportunity to properly evaluate his or her position in the case. ADR takes two forms. The first form, mediation, is the more informal method. A dispute is brought before a single mediator, who hears both sides of the story and then facilitates settlement discussions based on his or her independent evaluation of the claim.
Mediation is usually voluntary.
It can be as informal as the attorneys for the parties and the parties themselves meeting with the mediator and presenting the pros and cons of the case along with a settlement demand. The second form of ADR, arbitration, is a more formal proceeding, usually involving a panel of arbitrators who hear the case. The case is presented by the parties' attorneys. However, they are not strictly bound by the Rules of Evidence, nor is there a jury or a judge as there is at a trial. Under many circumstances, arbitration may be final if the parties agree to submit to binding arbitration.