What Is Alternative Dispute Resolution?

Full Video Transcript

It’s no secret that lawsuits in the United States are often stressful, long, and expensive. Because of this, many people are turning to other methods to settle their disputes. Mediation and arbitration are two forms of alternative dispute resolution that have emerged as popular ways to resolve conflict without resorting to litigation. With mediation, a neutral third party sits as sort of an adviser between the two parties. The mediator listens to both sides, makes suggestions about how the parties might mutually resolve their conflict, and tries to help the parties reach such an agreement. Mediation is not designed to find one party at fault or to declare a winner; rather, it’s designed to create a win-win solution. Arbitration, on the other hand, is a process that does declare a winner. A private judge hears evidence and arguments on both sides before reaching a verdict, very similar to a regular court case, only less formal. Arbitration can be either binding, which means no appeal can be made, or non-binding. The advantage of alternative dispute resolution is that it is typically quicker and less expensive than going to court.