Alternative Dispute Resolution: a cost-effective, time-saving stress-reliever

Alternative Dispute Resolution (ADR) encompasses the various “alternative” ways that disputes can be resolved without a trial. For civil cases, ADR often comprises neutral evaluation, arbitration, settlement conferences, and mediation. These mechanisms ultimately provide people with the opportunity to rectify issues with the support of a neutral third party. Here’s why ADR is a fitting option for your dispute:

ADR is more cost-effective and efficient

Through ADR, disputes can be resolved in mere weeks or months, largely due to greater flexibility in scheduling, and the ability to bypass the congested court system. This is a stark comparison to a matter taken to court, which could take years. As such, ADR allows disputes to be resolved in a timely manner, saving invaluable resources and time. Moreover, the quicker resolutions, contained legal fees, and streamlined process of ADR significantly reduce the overall costs for both parties, resulting in a more satisfactory outcome that avoids the added expense of starting a case.

ADR puts parties in control rather than their legal representatives

A significant benefit of Alternative Dispute Resolution is that it gives people more agency over how and when a dispute will be resolved. As parties are able to tell their sides of a story and have a say in the final decision, ADR ultimately empowers individuals to cooperate using a framework that emphasises collaboration and communication, allowing complex and often emotional issues to be settled.

ADR is more successful and facilitates widespread justice

Alternative Dispute Resolution is a highly successful mechanism, with settlement rates nearing 85%. As it reduces the stress associated with court, including appearances, time and costs, participants report a high degree of satisfaction. Furthermore, ADR can facilitate agreements that a court would be unable to order and enforce, and therefore allows creative and flexible options to be explored through effective communication.

Rather than pitting one party against another, ADR focuses on finding mutually acceptable solutions and common ground, which can preserve personal and business relationships by avoiding potentially adversarial court proceedings. This is especially ensured by the confidentiality of ADR processes, as only those invited can attend sessions. This privacy encourages honesty and openness during discussions, fostering an environment conducive to settlement. Finally, ADR makes justice more accessible, as dispute resolution mechanisms are attainable by a wider range of people.

Alternative Dispute Resolution resolves a conflict that occurs outside of the courtroom. While ADR is not always suitable for every dispute type, it is a cost-effective, private and cooperative option that can be utilised at any point, including before, during, or after a judicial decision, making it a flexible method of dispute resolution. If ADR is unsuccessful, disputes may need to be taken to court, which would further increase legal costs. Ultimately though, Alternative Distribution Resolution is a cost-effective option to resolve conflict without litigation, publicity, added stress, and bad blood between parties.

To decide the most suitable type of ADR for your dispute, or should you have any questions, please do not hesitate to contact us on (02) 9170 0899.

Written by Olivia Maietta