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Alternative Dispute Resolution

Alternative dispute resolution (ADR) has come to refer broadly to a range of processes (e.g., bilateral negotiation, fact finding, mediation, summary jury trial, arbitration) that are used in transactional (e.g., design contracts, develop regulations), dispute prevention, and dispute resolution contexts. ADR processes operate in public and private settings, such as courts, government agencies, community mediation centers, schools, workplaces, and private providers, to address an array of substantive issues (e.g., custody, torts, contracts, misdemeanors, environmental issues).

This entry focuses on a subset of ADR processes: those that involve a neutral third party and serve as an alternative to court adjudication of civil, divorce, and minor criminal disputes. The processes that are most commonly used are described in the following section.

The goals and asserted benefits of ADR include enhancing disputants' satisfaction with the resolution process and its outcome; producing better outcomes and increased compliance; improving the disputants' relationship and reducing future disputes; providing faster, less expensive, and confidential case resolution; increasing disputants' access to a hearing on the merits; and reducing caseloads and the use of court resources. These goals do not all apply to, and are not of equal importance in, every ADR process and setting. Criticisms of ADR, particularly when its use is mandatory, include that it lacks procedural safeguards, decreases public participation and scrutiny, reduces the available legal precedents and reference points, creates pressures to settle, provides secondclass justice, and impedes access to trial by adding another step in the litigation process. Empirical field research on the efficacy of ADR, and on the impact of process, third-party, and dispute characteristics, is discussed in a subsequent section.

Third-Party ADR Processes

Third-party ADR processes fall into two main categories. The first involves processes such as arbitration, in which the third party decides the case for the disputants. The second category involves processes such as mediation, in which the third party assists the disputants in reaching their own resolution. If the disputants reach an agreement, it is legally enforceable; if they do not, the case continues in litigation. Although most disputes settle before trial, a neutral third party can help disputants overcome the logistical, strategic, and cognitive barriers to bilateral negotiation that often impede early or optimal settlements.

Disputants can enter ADR as the result of a predispute contractual agreement to use ADR or, after a dispute has arisen, as a result of mutual agreement, judicial referral of a specific case, or court-mandated use for an entire category of cases. In both court-connected and private ADR, the proceedings are private, and the content of any agreement reached is confidential and not reported to the court. Below is a general description of several commonly used processes. How each is implemented varies with the type of setting and disputes, as well as with the specific ADR provider.

Arbitration involves a hearing during which the disputants' lawyers present evidence and arguments to a single arbitrator, or sometimes a panel of three arbitrators, who renders a decision. In voluntary private arbitration, the arbitrator's decision typically is binding, but the disputants determine that as well as other features of the process by agreement. Mandatory court-connected arbitration is nonbinding: The disputants may reject the arbitrator's decision and proceed to trial de novo. If they accept the arbitrator's decision, it becomes a court judgment.

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