Alternative Dispute Resolution: Modes and Benefits

This essay covers the concept of ADR and its various modes, including arbitration, mediation, conciliation, and negotiation. It explains the benefits of ADR, such as cost-effectiveness, time-saving, confidentiality, and flexibility. The role of the third party is crucial in solving the conflicts arise between the parties in the process of ADR, who remains neutral while addressing the matter in issue.

Assessment 2 Essay

Table of Contents
Introduction .........................................................................................................................................2
Main Body............................................................................................................................................2
Conclusion............................................................................................................................................4
References............................................................................................................................................5
Introduction
Alternative dispute resolution includes the process of outside court settlement. The parties can solve
the disputes without undergoing to the trial procedure of the court. The process of ADR can be
chosen by the parties upon their discretion or it can be processed by the order of the court1. This
essay covers the concept of ADR and its various modes. It further explains the benefits of the
Alternative Dispute Resolution.
Main Body
Courts are essential instrument in order to maintain peace and harmony in the society and to avoid
the situation of chaos among the people. But there are certain disputes which do not require the
judicial attention or intervention. Such conflicts needs a particular set of formal regulation that is
1 Brett J, 'Attitudinal Structuring, Alternative Dispute Resolution, And Negotiation Strategy'
(2020) 31 Negotiation Journal

Alternative Dispute Resolution, which can reach to a common point of settlement2. ADR is a
process where the disputes are resolved outside the court. The primary aim of ADR is to reduce the
burden of the courts. It is a technique that allows the parties to reach towards the agreeable solution
of the problem without any kind of confusion. There are different methods used in this process and
the parties are not needed to approach the court fore the same. ADR is now being recognized on
both national as well as international level. The role of the third party is very crucial in solving the
conflicts arise between the parties in the process of ADR, who remains neutral while addressing the
matter in issue. Then according to the different variants of dispute resolution the qualification of the
third party also varies. There are four modes of dispute resolution, namely, Arbitration, Mediation,
Conciliation and Negotiation.
Arbitration- The disputes are solved between the parties by the involvement of the third party
known as the arbitrator. The parties take part in the hearings with their respective legal
professionals. And the legal representatives produce the evidence and their contentions before the
arbitrator. The decision of the arbitrator will be final and binding on the disputed parties. The parties
cannot withdraw the arbitration process in between and also are not allowed to switch to another
alternate process of dispute resolution. Once the proceedings under arbitration process has started,
the parties are not permitted to approach the court. The process of arbitration can be voluntary or
compulsory in nature3. Voluntary is when the parties choose the particular method to solve the
conflict and compulsory is when the court passes an order to solve the matter through arbitration.
Mediation- The process of mediation involves a mediator between the parties who solves the
disputes among them. It holds much more flexibility than the process of arbitration because the
parties need not to agree with the decision of the third party. The agreement made between the
parties is not having a binding force upon them. The mediator only provides with the techniques or
tools to reach on the common point of agreement.
Conciliation- The third party involved in this method is the conciliator. The conciliator use to meet
the parties collectively as well as personally in terms of understanding each and every aspect of the
case. Under this process the parties can describe their objective and the purpose to join the hearing.
The decision is taken by the conciliator on the basis of the communication held between the parties.
It is also a flexible method which do not holds any binding nature on the agreement until and unless
the parties agrees to the same by signing the document.
2 Ngira D, '(Re) Configuring ‘Alternative Dispute Resolution’ As ‘Appropriate Dispute
Resolution’: Some Wayside Reflections' [2019] SSRN Electronic Journal
3 Wong P, 'Is Mandatory Alternative Dispute Resolution A Panacea To Attain Effective
Payment Dispute Resolution?' (2019) 7 Journal of Legal Affairs and Dispute Resolution in
Engineering and Construction

Negotiation- The dispute between the parties under this method is addressed by the negotiator who
acts as the third party. The negotiator uses different modes of communication to settle the conflict
among the parties. As the name suggests itself, this process includes element of discussion for the
dispute settlement where the parties negotiates on the particular issues4. The major aim of
negotiation is to reach to the fair agreement which can be accepted by the parties without any
confusion. It is an informal process of dispute resolution5.
Benefits of Alternative Dispute Resolution-
1) It is cost effective. These alternatives includes less cost than the normal court proceedings
which includes the fee of the lawyers, court fee, etc. If the issue is complex or grave in
nature then it may result to a major financial loss.
2) It does not results in a stressful experience. The court proceedings needs a continuous
attendance on the decided dates and for the same the parties use to suffer in terms of
backlogs in their work.
3) This method appoints a third party which assists in solving the disputes. This ensures
unbiased approach in taking the decision related to the matter in issue.
4) The process of the ADR takes place behind the closed doors which maintains the privacy
and confidentiality of the parties as well as the matter in issue.
5) The process of dispute resolution saves time in terms of avoiding the prolonged process
which can be seen in terms of the court hearings.
Conclusion
The above essay concludes the various alternatives of court proceedings. Alternative Dispute
Resolution encompasses various methods by which out of court settlement can be done. Basically
the procedure includes arbitration, mediation, conciliation and negotiation, in which the third party
involves to sort out the conflicts arise between the parties. It further states the benefits of alternative
dispute resolution, that is, cost effectiveness, time saving, maintains confidentiality, flexibility of
various modes of ADR like, mediation, conciliation and negotiation where the decisions of the third
party are not binding on the parties in dispute. The exception among them is arbitration, where
arbitrator's decision will be considered as final order and the parties are bound by it.
References
Brett J, 'Attitudinal Structuring, Alternative Dispute Resolution, And Negotiation Strategy' (2020)
31 Negotiation Journal
4 KOVAČ C, and KRIŠTO I, 'MEDIATION - ALTERNATIVE DISPUTE RESOLUTION'
(2019) 9 Safety Engineering
5 maina S, 'Alternative Dispute Resolution' [2021] SSRN Electronic Journal

Ngira D, '(Re) Configuring ‘Alternative Dispute Resolution’ As ‘Appropriate Dispute Resolution’:
Some Wayside Reflections' [2019] SSRN Electronic Journal
Wong P, 'Is Mandatory Alternative Dispute Resolution A Panacea To Attain Effective Payment
Dispute Resolution?' (2019) 7 Journal of Legal Affairs and Dispute Resolution in
Engineering and Construction
KOVAČ C, and KRIŠTO I, 'MEDIATION - ALTERNATIVE DISPUTE RESOLUTION' (2019) 9
Safety Engineering
maina S, 'Alternative Dispute Resolution' [2021] SSRN Electronic Journal