Alternative Dispute Resolution (ADR) is a way of solving a problem using different methods other then litigation. The time for a court room and legal defense is a costly process that can take years before reaching a decision. Certain steps or methods should be considered before taking a case to trail. Arbitration is the most common method of ADR, other methods are mediation, conciliation, mini trial, fact-finding, and judicial referee.
Mediation comes into play when a negotiation does not come to a fair conclusion. A neutral third party is brought in to listen to each side of the conflict and set out new and old ideas that should be considered. Negotiation and Mediation is very similar, the only difference is coach is brought in to give pointers and exercises that could help resolve a conflict. Usually Mediation is welcomed, members understand they could not resolve the conflict themselves and everyone is ready to participate in getting the conflict solved. (Conflict and Cohesion, 2001) "Conciliation is a form of mediation in which the parties choose an interested third party to act as the mediator." (Cheeseman, 2004)
Arbitration is the most common method of ADR "Arbitrators are usually selected from members of the American Arbitration Association (AAA) or another arbitration association (2004) Arbitration is not litigation or a trial court. This method "chooses an impartial third party to hear and decide the dispute (2004) Arbitration is considered after one has attempted to resolve a conflict by negotiation, mediation and have tried other conflict resolutions but have not been successful. This is where the team admits defeat, and argues their case to the Arbitrator (Judge). Before the final decision is made both teams are usually in agreement to follow the a ...