There are six types of alternative dispute resolution (‘’ADR’’) procedures summarized as follow:
1. Arbitration:
In arbitration, the parties choose an impartial party to hear and decide the dispute. This neutral party is called the arbitrator. Arbitrators are usually selected from member so of the American Arbitration Association (AAA).
Evidence and testimony are presented to the arbitrator at a hearing held for this purpose. Less formal evidentiary rules are usually applied in arbitration hearings than at court. Then, the arbitrator will reach a decision and enters an award. The parties would either agree in advance to bound by the arbitrator’s decision and award or not so agreed, then the arbitrator’s award can be appealed to court.
2. Mediation
In mediation, the parties choose a neutral third party to act as the mediator of the dispute. Unlike the arbitrator, a mediator doesn’t make a decision or an ward. Instead, a mediator acts as a conveyor of information between the parties and assists them in trying to reach a settlement of the dispute. A mediator often meets separately with each of the parties. Either the mediator will be successful and an agreement will be reached or the case proceeds to the trail.
3. Conciliation:
If the parties choose an interested party who acts as a mediator in this case, the procedure would be conciliation rather than mediation.
4. Minitrial:
Minitrial is a session, usually lasting for a day or less, in which the lawyers for each side present their cases to representatives of each party who have authority to settle the dispute. In many cases, the parties hire a neutral person (e.g. a retired judge) to preside over the Minitrial. The parties meet to try to negotiate a settlement.
5. Fact-Finding
Fact finding is a process whereby the parties hire a neutral person to investigate the dispute. The fact finder reports his or her findings