What is ADR ?

ADR

(ALTERNATIVE DISPUTE RESOLUTION)

Everything that you need to know about ADR in simple words from the base and in the understanding of general public is in this following blog below, so do check out and read and don't miss it.

so whenever there is a dispute or a fight between two or more individuals, they refer that dispute in courts by filing case against the other for the court to resolve the case and take the decision for them. But as you know the court decisions are very strict and has a binding force. meaning the parties to the cases have to follow the decision of the court/judge and they cannot deny it. So many a times people dislike referring the dispute/fights to the court. So these people have the option to resolve their dispute through ADR methods.

Now lets see what is ADR:-

The full form of ADR is "Alternative Dispute Resolution" and as the name suggests ADR means a method of resolving disputes. In this what happens is that when there is a dispute between two or more people, and if they both dislike going to court, they can agree to settle dispute outside the court through ADR. Or if, any one party dislike going to court then that person through his lawyer can send an invitation to the other party with whom he has a fight or a dispute and ask the other party to settle the dispute through ADR methods.

Types of ADR

There are four types of ADR methods

1) Mediation

2) Conciliation

3) Negotiation

4) Arbitration

Composition of ADR

So lets know see what the ADR meeting consists of or who conducts it and resolves dispute: -

In ADR the parties decide the date of meeting unlike the courts where the court decide the date. ADR is usually held in a conference room or any place eligible for a meeting to be conducted. the parties involved in the ADR is obviously the clients and each of the clients advocate who will be the negotiating (resolving dispute) party. Sometimes there is also a third party involved who acts as a judge but they wont decide the case, they will only volunteer to guide the parties and only check that a fight doesn't arise in the meeting.

In mediation and Conciliation there involves a third party as judge but in negotiation there is only the parties to the dispute along with their lawyers involved. client counselling is done between the client and the lawyer before the resolution of a dispute takes place. Arbitration is just like the above mediation, conciliation and negotiation, only difference is that the decisions in the meeting are binding on parties and parties can appeal in higher court as the arbitration is done by the court officials and also a memorial is to be drafted in Arbitration.

Demo of How Dispute resolution works in ADR: -

Imagine there are two parties A and B.

A gives a whole five star chocolate bar to B and B in return gave A one piece of biscuit from his Hide and Seek biscuit packet.

Now A is angry from B that in return of his full five star chocolate bar, B gave him only one biscuit and now A might file a case in court against him.

B dislikes going to court, so B through his lawyer sends an invitation to A for resolving the dispute through any of the ADR methods.

If A rejects the invitation then there's no chance but only to go in court but if A accepts the invitation the meeting date will be decided by them and ADR will take place.

Now in the ADR meeting the Lawyers of each client will negotiate along with the client. So it might go like, party A will say that the five star chocolate bar is much bigger and much more in quantity wise compared to the one piece of hide and seek biscuit which is small and flat and so party A might demand more pieces of biscuits from B.

Party B might say that the quality of one piece of hide and seek biscuit is much good and enough in exchange of one whole chocolate bar. then party A might disagree and say that they will file case.

then party B might say ok lets settle it here, I will give u more pieces of biscuits.

party A: we want total 8 pieces of your biscuits.

party B : we have only 10 pieces in one packet we cant give 8!

party A : ok then give 6 pieces

party B : compared to the quality of biscuits giving 6 will be too much. otherwise take back your chocolate I don't want the deal.

party A : no no wait! fine nor yours nor mine, lets settle with 5 biscuits. you happy and me also happy.

party B : fine 5 biscuits ill give you in return of one five star chocolate bar.

party A : great its a good deal.

party B : yes. have a great day.

And this is how dispute resolution takes place. Now u might think why do you need such a formal meeting for small things!

well for this I will tell you that having a formal dispute resolution meeting along with your lawyer helps to resolve disputes and fights faster than in a court and it also avoids verbal and physical fights between clients as it is a friendly discussion. Also ADR is pocket friendly and cheaper compared to the court expenses. Also the clients hold ego in a dispute, so probably they will never sit together alone to settle a dispute among themselves, after all its a human nature. so if you fear going to courts and also hold ego to not directly confront the opposite party to resolve dispute then ADR is the best option!!

Now lets see how it benefits the parties, You know courts investigations and calculations are strict and their decisions are firm and very strict and final, so if A took the dispute to court by filing a case then court may either tell B to give A full pack of hide and seek biscuits which would result B in loss.

Or the court might have told B to give only 3 pieces of biscuits in return of one five star chocolate bar which would not benefit A. But in ADR A had good chances to negotiate and demand more biscuits and therefore A got total 5 biscuits. This also resulted in balance benefit to each party.