Advantages of Alternative Dispute Resolution (ADR) Over Litigation

Alternative Dispute Resolution (ADR) is an old and effective practice in the sphere of law. It has been used successfully for thousands of years. In this era of globalization, where trade is happening at a global level, Alternative Dispute Resolution has been growing in use. Instead of litigation, organizations are choosing Alternative Dispute Resolution (ADR) to resolve business-related disputes, because this method is flexible, time-effective, and cost-efficient.

Alternative Dispute Resolution (ADR) vs. Litigation: A Comparative Analysis

• Litigation is the process of preparing and presenting the case in court, whereas, in Alternative Dispute Resolution (ADR), a third party or neutral partyis known as an arbitrator, handles the entire matter of dispute independently without court.
• Litigation is subject to strict rules imposed by law governing officers, whereas Alternative Dispute Resolution (ADR) is a flexible process and not bind to strict rules.
• Litigation is generally a public process, where judges or jury gives final verdict in the courtroom, whereas Alternative Dispute Resolution (ADR) is a private process; parties are free to choose the desired place. In the process of Alternative Dispute Resolution (ADR), arbitrators help parties to arrive at mutually agreeable decisions.

What are the Advantages of Alternative Dispute Resolution (ADR) over Litigation?

There are various important advantages of Alternative Dispute Resolution (ADR) over litigation, which are below:

The procedures involved in the ADR are hassle-free and smooth. In a single procedure ADR grants parties, the ability to resolve a dispute without lengthy and ongoing courtrooms hearings.

ADR is a cost-effective than court cases. In the process of Alternative Dispute Resolution (ADR), there is no place for lawyer fees, costs of witnesses, etc.

There is no place for confidentiality in litigation and courtrooms, here cases are open to the public. But in Alternative Dispute Resolution (ADR), parties have an option to keep all proceedings and conclusions confidential. This makes parties to focus on the outcome of a dispute without worrying about their confidentiality.

There is no involvement of the jury and courtrooms in Alternative Dispute Resolution (ADR) because business entities prefer to choose an arbitrator. An arbitrator is a subject matter expert who has profound knowledge of business-related issues therefore he/ she can resolve commercial and consumer disputes efficiently.

The approach of solving business disputes in Alternative Dispute Resolution (ADR) is more professional and diplomatic than litigation, which doesn't spoil the corporate relationship.

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