ADR in context — overviewDefining ADR

ADR has no statutory basis and is not regulated by prescribed rules and regulations. It provides a confidential dispute resolution mechanism outside of a court of law, by which a dispute or difference is submitted to an impartial individual(s). The mechanism can lead to a binding resolution if provided for in the contract.

The ADR mechanisms can broadly be divided into facilitated processes and imposed decisions.

Comparison of forms of ADR and litigation

A number of differences arise. Areas in which differences are readily seen include:

• privacy/confidentiality

• procedure

• powers of the presiding adjudicator, judge, arbitrator, mediator or expert

• enforcement of award/judgment/decision/determination

• fees

• costs

• right of appeal

Which form of ADR

Mediation is the most established and widely used form of ADR but there are many other types such as judicial appraisal and neutral fact finding. Which form is most appropriate for the parties will depend upon what factors are most important to them. Examples of the varying factors to consider when choosing a form of ADR are the extent to which parties wish to exert control on the process, the value of the dispute, the number of parties involved and whether parties wish to have a facilitated process or an imposed decision.