Alternative Dispute Resolution (ADR) offers business leaders who are attempting to navigate a conflict towards a resolution with options. Instead of simply having traditional litigation to resolve the conflict, business leaders can also choose ADR. This option is of particular interest for business leaders at this time, as we continue to navigate the coronavirus pandemic. During this time, resolution through traditional litigation may take even longer than normal as many courts are shut down, operating at minimal capacity or only hearing emergent matters.
ADR can navigate the hurdles that are present due to the pandemic, often making use of remote meetings and other technologies to limit potential exposure to the virus while still moving forward with negotiations. Thus ADR can help business leaders to resolve conflicts in an efficient manner in today’s marketplace.
What type of ADR is right for my situation?
The two most well-known forms of ADR are mediation and arbitration. Both allow the parties to negotiate a resolution. In some cases, a previously existing contract may require the matter move forward through arbitration. Mediation generally involves a neutral third party who helps to guide negotiations. Both can result in a timelier and cost-efficient resolution for all parties.
The effectiveness of ADR generally depends on party interest in finding a resolution. Business leaders navigating negotiations will likely take a number of business considerations into account during negotiations and also weigh the merits of the case. Although legal professionals note that ADR generally does not result in full recovery, it can provide a viable option for efficient resolution for most business conflicts.