Arbitration & Mediation
ADR (Alternate Dispute Resolution) is a process of resolving disputes by utilizing a third party to make decisions. Similar to a court, the Arbitrator or Mediator will hear the issues and facts of the case, and make a ruling on the merits. Typically, it is far less expensive than the formal process of litigation. Most court cases take years to resolve and is very costly. After a court rules and enters a judgment, ther is usually little room to continue a relationship with the other party. However, by using ADR to resolve the dispute, several things come to your advantage. First, the ADR process happens rather quickly. Disputes can be resolved in days rather than the years it may take in other courts. Second, the costs associated with arbitration are far less than the costs of litigation.
Third, a judge typically has no industry knowledge. He does not know or understand the way certain industries operate, conduct business, or interact. A judge merely applies the general law to certain facts and makes a ruling, which may be inconsistent with certain industry practices. However, in ADR, the parties in a dispute can choose an arbitrator with specific industry knowledge. ARD allows the disputing parties to review the resume of the Arbitrators, and chose one that is fitting for the exact situation. You can not pick a judge. ADR Arbitrators understand the language of the industry and understand the lingo, terms-of-art, and methodologies of the industry. What does a judge really know about how an industry works?
Fourth, ADR keeps your disputes private. Every time to go to a court hearing or file court documents, it becomes public information. The information can be seen or heard by your friends, fellow employees, and even your competitors. To some businesses this could be devastating. ADR is private. There are no public hearings. None of the information disclosed during the ADR hearing falls into the public domain. ADR keeps your private business, your business. Fifth, ADR is far less formal than traditional litigation. The rules and procedures for intruding evidence and the process of presenting your case as well as defenses in ADR is informal. This usually puts the disputing parties in a better position to negotiate and communicate with each other. Sixth, you may be able to repair the dispute in such a way that you can maintain the relationship with the other party. This is popular among businesses that still need to deal with other, such as vendors and suppliers as well as service companies. Seventh, arbitration may be the forum of choice for resolving disputes. For example, in the commodities industry, shipping, aviation, transport, energy, international trade and insurance, almost every contract in the industry mandates the use of ADR before any civil suit may be initiated. If you are looking for a productive and inexpensive method to resolve a dispute, ADR may be the right choice for you.
There are several other effective alternatives to resolve disputes. The spectrum includes assisted negotiation, conciliation, mediation, and arbitration. ADR professional are neutral, experienced, and attentive to providing an environment in which the cause of the dispute is fully explored. Arbitration is resolving disputes using an independent neutral person to make a decision on the issues in dispute.
Mediation is a method of resolving disputes using an independent neutral person or persons to facilitate an effective negotiation and resolution to the dispute. Mediation is a popular method of ADR because it is inexpensive and efficient when compared to the costs of litigation. Similar to arbitration, A prospective mediator is asked about his other background, training and experience in the field or industry that the dispute arose. Typically, the parties in the dispute will formally agree to mediate the matter together, and agree upon which mediator to use.
What is ADR?
Alternative Dispute Resolution (ADR) is a term used to describe the possible procedures used to resolve disputes outside the traditional litigation process. , Typically, ADR is entered into voluntarily by parties in a dispute, in an attempt to resolve it, without the costs commonly associated with litigation. Usually in employment contract, securities dealings and credit card agreements have a mandatory arbitration clause which requires anyone who wishes to file a claim must first seek arbitration. In essence, ADR is sometimes a precondition to formal litigation. In those agreements, it is only after a good-faith attempt to negotiate a settlement has failed that litigation may proceed..
What is mediation?
Mediation is a process in which the parties agree to appoint a third-party neutral to assist them in attempting to reach a voluntary settlement. The process is completely voluntary and the parties may terminate the process at any time. All information discussed during a mediation is typically confidential and may not later be used in a court proceeding if the mediation does not work. The mediation only becomes binding when the parties have concluded a settlement agreement.
If someone doesn’t agree with the arbitrator’s decision, according to arbitration law, he may challenge it in court. Usually, courts will not change an arbitrator’s finding. Courts will decide whether the arbitrator was guilty of malfeasance, or whether the arbitrator exceeded the limits of his authority or whether the award conflicts with arbitration law.
Arbitration has been a widely adopted provision in labor agreements because arbitration is a means of resolving disputes with a minimum need to resort to cumbersome and expensive judicial proceedings. With the help of Arbitration Lawyers the parties can agree ahead of time on their rights as well as the exact procedure that will be used to resolve disputes concerning labor agreements.
The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, (the “New York Convention” ), was established in order to combat the uncertainty inherent in having the issue of enforceability of an award depend on each country’s national law. It is the basis for the international arbitration system. Since its inception, over 140 nations have ratified the Convention, including the US, all members of the European Union, all other major trading countries.
When a dispute arises that cannot be settled among the parties, ADR may be the best approach to resolving the dispute. The benefits of ADR are immense. Speak to one of our independent network attorneys for a case evaluation.
