Commercial dispute resolution (CDR) is a general term for methods of resolving legal conflicts outside the courtroom. CDR refers to mediation and arbitration, two terms that are often confused with one another:
- Mediation brings both sides of a dispute together with a professional, who listens to both arguments and tries to craft a compromise.
- Arbitration differs from mediation in that a mediated solution is an option to be accepted or rejected by the parties, whereas the outcome of arbitration is legally binding.
When compared to litigation in the court system, ADR is cheap and fast. While the parties may have to pay from $300 - $600 per hour for a mediator or an arbitrator (compared to $150 or so to file a claim in court), they benefit by not having to go through the time-consuming & expensive court process.
ADR methods are gaining widespread support. As the mediator is 100% neutral - he/she is not there to judge or advise - they may be able to draft a compromise solution acceptable to both sides. In the event of an agreement, a contract can be drawn up and signed by both parties at which time it will move quickly through the courts.
There are times when it is better to let a grievance play out in front of a jury. But often, you just want a problem solved!
DIVORCE & CHILD CUSTODY
In the case of divorce or child custody cases, parents often find it easier to negotiate a settlement in the interest of all the family members through mediation - dividing responsibilities and shared property through a process that allows more control over the outcome. If a mediator is called into a conflict early-on, the emotional costs of a breakup can be much lower than if they were played out in an adversarial courtroom setting.
AUTO ACCIDENTS
If you're in a car accident and haggling with your insurance company over an uninsured motorist claim, you're not looking to win a huge jury award after four years of litigation. You want a quick resolution - you want your problem solved. If your insurer agrees to ADR, you can sit down with a mediator and quickly work out a resolution.
A lawyer specializing in your particular type of claim can advise you on the strength of your case and the benefits and costs associated with a decision whether to use ADR or not. Your attorney should also be able to provide an estimate relating to the length of time it might take if the case were to go to court.
Business Law
