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What are the benefits of alternative dispute resolution?

On Behalf of | Mar 23, 2023 | Commercial Law |

Alternative dispute resolutions (ADR) are common in business because they provide a direct way to settle disputes without going to court. Organizations might consider it an ideal option to avoid accompanying fees when going to trial.

Companies can use the following ADR methods for commercial or business disputes: negotiation, mediation and arbitration. They might have procedural differences, but they all offer flexibility, discretion and speed.

These options could also provide certain formalities like litigation. Additionally, ADR options can present the following benefits to the parties involved:

  • The process is more straightforward than going to trial.
  • Parties involved have more control over the procedures.
  • Details of the dispute can remain private.
  • The policy has minimal space for local advantages, providing neutrality.
  • Decisions and awards are final and enforceable.

Because of these benefits, certain firms use ADRs as the go-to option to address various disputes. However, they may only apply depending on certain factors, such as the circumstances of the involved parties.

Are ADRs better than litigation?

Despite implementing ADR policies, they might only work for some situations. These alternatives could only work if the parties involved are willing to discuss and cooperate to reach an agreement.

It may not be the case for specific disputes regarding rights, which require a court decision. Choosing between ADR and litigation also depends on the end goal. Going to court might be more appropriate if an involved party aims for a legal precedent rather than an award.

Even so, these ADRs are convenient for reaching straightforward resolutions in manageable business and commercial disputes. It depends on what each involved party wants to accomplish. For more information, contact Zarco Einhorn Salkowski, P.A. for a free consultation.