Alternative Dispute Resolution

Because of the expense associated with legal proceedings, many companies seek alternative ways to negotiate, settle disputes, and mitigate contract disputes. Alternative dispute resolution (ADR) is one way those companies can help keep legal costs down. Within the realm of ADR, there are several different options, ranging from arbitration to mediation. “ADR describes a variety of approaches to resolve conflict which avoid the cost, delay, and unpredictability of the traditional adjudicatory processes while at the same time improving workplace communication and morale” (www.eeoc.gov/federal/adr/, 2013).
“In broadest terms, alternative dispute resolution (ADR) encompasses a range of non-binding and binding techniques employed, with the assistance of third party neutrals, to resolve issues in controversy. In recent years, ADR techniques have been used successfully by agencies throughout the federal government to resolve a wide variety of contractual, labor, regulatory and other disputes. In the procurement field, many contractors and agency procurement personnel recognize that ADR can be a valuable alternative to traditional, costly and time-consuming litigation” (www.adr.gov, 2013).
One example of using ADR to prevent a costly litigation is with service contracting. Say a specific company is hired to perform remodeling work for an office. Per the initial contract between the contractor and the business partners of the office, partial payment was made at the beginning of the remodel job. The timeline promised for work completion was 3 months, however after 2 months, the contractor and his workers stopped showing up on the job site and work ceased progression. The business partners may seek a mediator to resolve the issues regarding the ceased work and completion of the project. If a mediator does not bring both parties together, with a mutual understanding and expectation of the goal, arbitration may be sought.
West Virginia has state legislation surrounding ADR – specifically designed for easing the burden of the legal proceedings within the court system at present date. West Virginia set about the state codes in order to ensure that uniform decisions were being made throughout the state and that there was some modicum of fairness throughout the process (West Virginia SS55, 2013).
In the previous example given, about the contractor who stopped working halfway through the project, arbitration would be the next step for resolution of issues. Arbitration is where each side disputes or argues the facts to one or more people – depending on the state legislation for who comprises and hears arbitration disputes. Arbitration can be voluntary or mandatory, however in this example because a binding contract is involved, it is a mandatory process. The dispute is settled by an impartial adjudicator and is technically a binding decision. Various sources state that a non-binding arbitration decision is the same as a resolution of mediation and if the dispute is taken before an adjudicator, it is considered binding. Some of the main proponents of alternative dispute resolutions is that by seeking non-litigious ways to resolve conflicts or disputes does keep legal costs at a minimum. Cases that proceed through the court system are time consume and resource consuming, and ADRs allow for resolution without the additional impact on the company’s resources.

References: http://www.eeoc.gov/federal/adr/; Retrieved November 17, 2013. http://www.adr.gov/; Retrieved November 17, 2013. http://www.legis.state.wv.us/wvcode/code.cfm?chap=55&art=15; Retrieved November 18, 2013

References: http://www.eeoc.gov/federal/adr/; Retrieved November 17, 2013. http://www.adr.gov/; Retrieved November 17, 2013. http://www.legis.state.wv.us/wvcode/code.cfm?chap=55&art=15; Retrieved November 18, 2013