Alternative Dispute Resolution (ADR) is the procedure for settling disputes without litigation, such as arbitration, mediation, or negotiation. ADR procedures are usually less costly and more expeditious. They are increasingly being utilized in disputes that would otherwise result in litigation, including high-profile labor disputes, divorce actions, and personal injury claims.

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One of the primary reasons parties may prefer ADR proceedings is that, unlike adversarial litigation, ADR procedures are often collaborative and allow the parties to understand each other's positions. ADR also allows the parties to come up with more creative solutions that a court may not be legally allowed to impose.

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Terms to Know

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• Arbitration - A process similar to an informal trial where an impartial third party hears each side of a dispute and issues a decision; the parties may agree to have the decision be binding or non-binding

• Binding and Non-Binding - A binding decision is a ruling that the parties must abide be whether or not they agree with it; a non-binding decision is a ruling that the parties may choose to ignore

• Arbitrator - An impartial person given the power to resolve a dispute by hearing each side and coming to decision

• Hearing - A proceeding in which evidence and arguments are presented, usually to a decision maker who will issue ruling

• Mediation - A collaborative process where a mediator works with the parties to come to a mutually agreeable solution; mediation is usually non-binding