If a dispute cannot be resolved by direct negotiation, a common
assumption is that court action is the only, or even the obvious,
option for the parties involved. While there is certainly a time
and a place for court action, another method of resolution may be
more likely to result in a compromise, or a more suitable final
decision.
This article provides an overview of the most common methods of
dispute resolution, the circumstances under which they might be
appropriate, and a comparison of their relevant features.
Unlike court actions, the alternative dispute resolution methods
explored below are voluntary, in that parties must mutually agree
to resolve (or attempt to resolve) their dispute by that method.
However, it is quite common for a commercial contract to mandate
that parties must refer any dispute to an alternative forum. In
this regard, they can be considered mandatory.
