Business Disputes: Alternative Paths To Resolution

When people think of Alternative Dispute Resolution or ADR, they think of mediation or arbitration. These two forms of ADR have little in common, except that they occur out of Court, the parties select their mediator or arbitrator, and both are designed to resolve cases expeditiously and cost-effectively.

Mediation by Agreement

Mediation is a creature of agreement (or may be court-ordered). It is best not to provide for mediation in a contract because it can thwart a party's ability to go to court to seek preliminary relief if necessary. However, a contract may state that the parties will hire a mediator in the event of a dispute, to facilitate settlement talks early and/or bring the parties together at various opportune times from the outset.