See Securities Dispute Resolution.Īrbitration is more formal than Mediation and resembles a simplified version of a trial involving limited discovery and simplified rules of evidence (ex.hearsay is usually admissible in arbitration). Mediation has also become a significant method for resolving disputes between investors and their stock brokers.

Mediation is used for a wide gamut of case-types ranging from juvenile felonies to federal government negotiations with Native American Indian tribes. Mediators are individuals trained in negotiations, who bring opposing parties together and attempt to work out a settlement or agreement that both parties accept or reject. Mediation is also an informal alternative to litigation. The main advantage of this form of dispute settlement is that it allows the parties themselves to control the process and the solution. Negotiation allows the parties to meet in order to settle a dispute. It is the preeminent mode of dispute resolution. While the two most common forms of ADR are arbitration and mediation, negotiation is almost always attempted first to resolve a dispute. Some of these programs are voluntary others are mandatory. As burgeoning court queues, rising costs of litigation, and time delays continue to plague litigants, more states have begun experimenting with ADR programs. ADR typically includes early neutral evaluation, negotiation, conciliation, mediation, and arbitration. OverviewĪlternative Dispute Resolution ('ADR') refers to any means of settling disputes outside of the courtroom. Arbitration and mediation are the two major forms of ADR. Public courts may be asked to review the validity of ADR methods, but they will rarely overturn ADR decisions and awards if the disputing parties formed a valid contract to abide by them. Any method of resolving disputes without litigation.

Arbitration definition