In order to understand the process of alternative dispute resolution, it is important to understand what happens during the various stages of formal dispute resolution.
Formal dispute resolution is the process of resolving disputes through the court system. At the onset of a dispute, the parties involved in the matter must file a claim, or a formal request to be heard in court. If the other party does not accept the claim or does not respond to the claim, a party may then file a "complaint," or a formal declaration of the dispute and what action he or she would like the court to take.
Once a complaint is filed, the other party will have to respond in writing, pleading either “guilty” or “not guilty” to the action. If they plead guilty, the case can be resolved. If they plead “not guilty,” the matter will go to trial. After the trial, the judge will issue a formal decision that will be binding on both parties. Alternative Dispute Resolution aims to avoid this lengthy process by expediting a resolution via various means.