Legal Definitions - ADR

ADR stands for Alternative Dispute Resolution, which refers to any method of resolving disputes without going to court. ADR includes processes like mediation, arbitration, conciliation, negotiation, and transaction. These methods allow parties to find solutions to their conflicts outside of traditional legal proceedings.

• Mediation: A mediator helps opposing parties work out a settlement or agreement that both parties accept or reject. For example, a mediator may help a divorced couple come to an agreement on child custody and support.
• Arbitration: An arbitrator or panel of arbitrators renders a binding decision on a dispute. For example, a company and a customer may agree to arbitration to resolve a dispute over a faulty product.
• Negotiation: Parties meet to settle a dispute themselves. For example, two neighbors may negotiate a solution to a property line dispute.

These examples illustrate how ADR methods can be used to resolve disputes without going to court. They allow parties to find solutions that work for them and avoid the time and expense of traditional legal proceedings.