Running Head: ADR ANALYSIS 1

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Running head: ADR ANALYSIS 1

ADR Analysis

Sherry Marie Stender

LAW/531

March 3, 2015

Norma Sutton
ADR ANALYSIS 2

ADR Analysis

Alternative Dispute Resolution (ADR) refers to a means of settling disputes outside of a

courtroom. ADR includes negotiation, conciliation, mediation, early neutral evaluation, and

arbitration. Because of rising costs of litigation and delays that courtroom appearances cause

litigants, more businesses have turned to ADR.

Arbitration and Mediation are two of the most common forms of ADR. Negotiation is

generally attempted first to resolve a dispute because negotiation allows both parties to meet in

order to attempt to resolve the dispute. The disputing parties have the ability to control the

process and the solution when resolving by negotiation.

Mediation is another popular ADR method to avoid litigation. Mediators are trained

negotiators used to bring the opposing parties together and try to find a resolution that both

parties can accept. Mediation is used for a wide range of case-types including disputes between

stock brokers and investors.

Arbitration is a more simplified version of a courtroom trial that includes evidence. An

arbitration is facilitated by an arbitral panel. Both sides must agree on an arbitrator or each side

must select an arbitrator and those two together select a third. The arbitrators meet for

negotiations a few times a day and the hearings can last varied amounts of times. The arbitrators

will deliberate much like a jury in a trial and deliver a decision or arbitral award.

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