Key advantage: The power remains with the parties. They must agree to the resolution.
HOW IS ADR DIFFERENT THAN ARBITRATION
Is arbitration ADR? Court ordered arbitration, which is pursuant to Code and non-binding is technically not a form of alternative dispute resolution. Why? Because it provided for by the same rules that move the case to trial. The parties have not selected it, the court has imposed it. Arbitration works because it streamlines or avoids the litigation process, provides for a final result, and significantly reduces the costs associated with preparing and presenting a case in the civil trial court. Arbitration may be as formal or informal as the parties elect. An informal arbitration may be conducted by the parties themselves, or with legal representation. Example, claims adjusters frequently present their own cases in arbitration. They bring the reports, and argue their evaluation. Arbitration is litigatious in its nature. It breeds a combative environment which tends to minimize the liklihood of an early resolution to a matter. An arbitration often subjects parties to similar rules and protocols of a courtroom environment.Key Disadvantage: The power remains with a third party - the arbitrator.ADR has been a mutually reinforcing success story for litigants, counsel and the courts. It provides an expedited dispute resolution format, preserves relationships where appropriate, reduces cost and removes litigation risk. It is an element of case preparation that counsel should discuss with the client at the retainer stage, and considered as part of an overall dispute resolution format.
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