Alternative dispute resolution

Alternative dispute resolution

Alternative dispute resolution is legally recognized as one of the measures to solve commercial cases. It is considered as a better, sensible, efficient, and cost-effective litigation handled out of court. The options help the litigants to avoid the delays and costs of the court process (Block, 2016). It is a preferential method that allows the company to prosecute any conflicts with its stakeholders harmoniously, achieve justice, and maintain the relationships, in addition to cost savings.

ADR involves various activities aimed at engaging the conflicting parties outside the court to find a solution. It involves the evaluation of the issue, consultation, negotiation, mediation, arbitration, and reconciliation. They are used incrementally, so th if one fails, the consecutive one is used. The engagement could occur between the conflicting parties themselves, or it could involve a mediating party that helps to hear each side and to forge an agreement. They are mostly applied in consumer, employment, and contractual disputes. The process could be voluntary or mandatory in different jurisdictions, and could also be independent or led by government agents (Block, 2016). Nevertheless, the parties take the primary role in prosecuting the issue, which makes the process more fulfilling.

The adverse effect of ADR is that it has evolved into a private judicial system with the same processes and systems that were trying to be avoided. There are included motions, briefs, discovery, depositions, judges, lawyers, court reporters, expert witnesses, publicity, and damage awards beyond reason. The extensive engagement delays the process and make it costly (Menkel-Meadow, 2013). Therefore, it is evident that ADR has lost its original value, which has led to decline of its application in commercial courts