Alternative Dispute Resolution (ADR): Mediation and
Arbitration - Quick Summary
Key Summary:
● ADR means different
processes that are aimed at
solving the problems without
reference to the court for a
trial.
ADR is generally classified into two
major types:
- The different types of ADR
include; mediation and
arbitration. Both methods are
designed to provide faster,
cheaper, and more flexible
solutions relying on the
judicial procedures.
Mediation: Mediation is one of the most effective methods to resolve conflict wherein the
chief parties involve are assisted by a third party called the mediator.
● The mediator does not decide the fate of the couple but assists them in reaching an
agreement on their own.
● Mediation is very versatile and can be applied in multiple of situations encompassing
family, business, and workplace issues.
● The major benefit of mediation is that mediated settlement is confidential and does
not become a part of a public record as is a case in a court.
● mediation can produce options that the litigation cannot come up with. It is also
usually quicker and cheaper than taking the matter to court.
Arbitration:
● Disputes solving process, on the other hand, is undertaken by an independent person
known as an arbitrator who assess the facts and come up with a final decision.
● arbitration is less related to mediation but it is closer to trial, although it may not be as
formal as a trial and can be made specific according to the parties involved.
● Arbitration is usually preferred in the cases of clause contracts and especially in the
cases of international business.
● Arbitration also has the advantage of finality because an arbitrator’s decision,
although final and conclusive, cannot normally be appealed to a court. Also, arbitration is non-public and may not disclose information of the involved parties to
the public.
Arbitration and mediation can be considered as beneficial as they contribute to the
following advantages:
1. less costs for proceedings, high confidentiality, and shorter time compared to the
courts. Thus, mediation and arbitration are significantly distinct from each other as
identifies below but the selection depends on the contingencies of the disputing
parties.
2. While mediation has the conflict solved in a friendly way, arbitration has a fixed way
of solving the conflict as it is final.
Alternative Dispute Resolution (ADR)
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