Alternative Dispute Resolution Agreement Definition

However, alternative dispute resolution (ADR) does not always keep its promises. Sometimes this path can be as expensive and stressful as the legal battle it is meant to replace, especially when an essential and complex claim is controversial and there are very different opinions about how the facts are interpreted. Third, when the parties have agreed to what is known as a caucusing procedure, the Mediator meets with each party separately in a series of confidential private meetings and begins to explore alternatives of comparison, perhaps by bringing the parties into certain “reality tests” of their initial proposals. This process, sometimes referred to as shuttle diplomacy, often reveals areas of flexibility that the parties have not been able to see or that would have been uncomfortable presenting formally. The standard ADR clause, which is inserted in all NCR commercial contracts, has many functions that contribute to the arbitration actually being an arbitration proceeding and not a dispute in disguise. These include guidelines on the qualifications of the arbitrator, the arbitrator`s power to grant a right of omission, an agreement that challenges to arbitral or arbitral awards are subject to federal arbitration law (and that the challenger must pay fees and charges if he loses), and restrictions on discovery. The growing popularity of ADR can be explained by the increasing burden on traditional courts, the perception that ADR entails fewer costs than litigation, a preference for confidentiality and the desire of some parties to have more control over the choice of the person or individuals who will decide their dispute. [6] Some chief justices of some jurisdictions (including England and Wales) are strongly in favour of this (ADR) use of mediation to settle disputes. [7] Since the 1990s, many US courts have also increasingly ruled in favour of using ADR to resolve disputes. [8] However, it is not clear whether the parties to the process can correctly identify and use the ADR programs available to them, which could limit their effectiveness. [9] Summary Jury Trials (SJT): In this adversarial dispute resolution procedure, each party presents their case in an abbreviated form to a jury. The jury then makes a decision that is only advisory, unless the parties require it to be a binding decision….