ADR Benefits
DISPUTE RESOLUTION
One can choose from a number of different processes when considering ADR, with each having benefits of their own. The following are just a few benefits that apply most generally to the different processes:
Less formal and more control
Proceedings are generally less formal than in court, with the parties being able to determine time, place and venue of the hearing. The choice of ADR specialist also rests with the parties. Depending on the process chosen, such as mediation, the parties enjoy greater flexibility in determining how the process will be run.
Less time consuming and less expensive
ADR processes are generally shorter than litigation with fewer postponements, and quicker awards. Court hearings can easily take years to reach resolution, while ADR processes may take weeks or months. Parties are therefore able to save on the exorbitant costs of litigation as a result of delays, fees and other costs associated with court trials.
Preserve relationships
Because the process is less adversarial, there is greater opportunity for parties to try to resolve their disputes with less hostility. This is important in situations where parties may need to continue to work together. While court proceedings generally result in a winner and a loser, it is often possible in ADR for both parties to come out satisfied with the outcome.
Case for mediation
Conflict is unavoidable in most human relationships and interactions, including in your business and professional life. This may take the form of contractual disputes with business partners or even conflicts within your labour force. Often these disputes require the intervention of an independent third party to resolve the situation. Most often this intervention comes in the form of a long, expensive and frustrating court process. Fortunately alternative methods of dispute resolution do exist.
Consider mediation.
Mediation is a cost effective and time saving method of resolving most disputes by allowing parties to talk through the areas of conflict, with the assistance of an independent third party. So, for example:
- In the case of ending a contentious contract, the mediator assists by raising the keys issues in the dispute and mediating the discussion between the parties to determine the terms of the termination, cost implications, responsibilities of each party, etc.
- In a contract dispute, your mediator will help both sides reach an amicable solution and even consider whether the business relationship is salvageable.
- In all circumstances of mediation, both parties are in control. The mediator’s role being to facilitate discussion by easing tensions and ensuring that the desired outcomes are always the focus. As human beings, the tendency to personalise interactions and engage with others in anger or resentment, can be very destructive. However a neutral third party can alleviate such emotional interactions and assist in resolving the disagreements.
- In summary then, mediation makes good business sense because:
- It is cheaper than litigation
- The choice of mediator is in the hands of both parties
- It is a more flexible option that avoids the sterile court environment and ongoing hostility between the parties
- The ultimate resolution of the dispute remains in the hands of the parties, making it far more efficient than a court process
- It saves valuable time
- The outcome and any agreements made are completely confidential.
- For any of your business disputes, consider using one of ADR Clinic’s mediators, who are skilled and experienced in resolving business disputes.
