ALTERNATE DISPUTE RESOLUTION (ADR)

Negotiation:

1. Parties themselves meet informally to try to resolve dispute.

2. With or without attorneys.
Conciliation:

1. Parties try to reach an agreement themselves.

2. Neutral third party assists them to resolve the dispute.
3. Conciliators do not recommend solutions.
Mediation:

1. Parties themselves try to reach an agreement.

2. Discuss their differences face to face in an informal atmosphere.
3. Mediator usually someone from the community meets with the parties.
4. Mediator usually receives a fee.
5. Few procedural rules.
Arbitration:

1. Arbitration Process: Formal method of dispute resolution.

2. Parties themselves do not come to agreement.
3. Third party the arbitrator makes the decision.
4. Arises voluntarily or through an arbitration clause in a contract. (Mandatory or non-mandatory)
5. May be binding or non-binding.
6. Arbitration Statutes

7. Role of the courts in arbitration:
To decide if arbitration clause in the contract is enforceable.
Courts may set aside the award based on arbitrator's "bad faith".
Courts may compel the losing party to comply with the award.

8. American Arbitration Association is the most prominent professional association for arbitrators.
9.      Regulation of the Arbitration process:
Federal Arbitration Act of 1925
Uniform Arbitration Act of 1955 (states)

Court Mandated ADR: Many federal and state courts are experimenting with forms of non-binding arbitration to reduce the amount of litigation.

Other Forms of ADR:

Summary Jury Trial (Federal) Litigants present their arguments, no witnesses called, non-binding jury verdict, and right to full trial if no agreement.
Mini-trial Attorneys briefly argue position, third party acts as advisor and if no agreement makes a decision as to how the court will act.
Early Neutral Case Evaluation Generally an expert is hired to evaluate each party's position. Each party explains with no hearing and no discovery.
Rent a Judge Private court system using former judges, parties hire a company to conduct the trial, federal rules of evidence are used, and may be binding or non-binding.
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