What is Alternative Dispute Resolution ?

Alternative Dispute Resolution (ADR) is a term generally used to refer to informal dispute resolution processes in which the parties meet with a professional third party who helps them resolve their dispute in a way that is less formal and often more consensual than is done in the courts. While the most common forms of ADR are mediation and arbitration, there are many other forms: judicial settlement conferences, fact-finding, ombudsmen, special masters,etc. Though often voluntary, ADR is sometimes mandated by the courts, which require that disputants try mediation before they take their case to court.

- In negotiation, participation is voluntary and there is no third party who facilitates the resolution process or imposes a resolution.
- In mediation, there is a third party, a mediator, who facilitates the resolution process ( and may even suggest a resolution, typically known as a " madiator's proposal"), but does not impose a resolution on the parties. In some countries ( for example, the United Kingdom ), ARD is synonymous with what is generally referred to as mediation in other countries.
- In arbitration, participation is typically voluntary, and there is a third party who, as a private judge, imposes a resolution. Arbitrations often occur because parties to contracts agree that any future dispute concerning the agreement will be resolved by arbitration.