A disagreement of any degree between two or more parties is referred to as a dispute. Chaos and conflicts are inevitable aspects of existence between many people. How we manage or deal with such disagreements and chaotic situations is critical to moving forward. Jointly or disjointed? Alternative Dispute Resolution is an alternative to the Formal Legal System. In modern times, existing judicial systems are increasingly overwhelmed with hefty burdens of civil litigation. The Alternative Dispute Resolution process includes processes of negotiations, conciliation, mediation and arbitration. Read more: A Dive Into The World Of Alternative Dispute Resolution Processes – Olatorera Consultancy Limited. Due to the concentration of litigation, repeated adjournment, costs associated with litigation, Alternative to Dispute Resolutions (ADR) is a favorable option amongst many law professionals today.
Importance of Alternative Dispute Resolution in Business Legal Battles:
- Confidentiality: The majority of ADR proceedings are private and confidential. Parties to a dispute can also sign a Non-Disclosure Agreement (NDA) to protect the confidentiality of their discussions. This guarantee of confidentiality allows the disputing parties to concentrate on the specifics of the disagreement rather than worrying about their organization’s reputation and public image. This protection of privacy is especially crucial when it comes to resolving conflicts concerning trade secrets or intellectual property (IP) of the parties involved. To safeguard the privacy of your ADR discussions, your organization should counsel a corporate lawyer to draft an NDA prior to your ADR discussions.
- Easy to Implement: One of the most significant advantages of alternative conflict resolution is that the various ADR approaches – negotiation, mediation, and arbitration – are simple to implement and only require the assistance of legal professionals. This aspect can be extremely useful in resolving disputes over intellectual property that span national borders. ADR provides a single way for resolving these conflicts without resorting to expensive and time-consuming multi-jurisdictional litigation.
- Higher Rates of Success: ADR resolutions, unlike court verdicts, are rarely appealed. This is due to the fact that these agreements are reached with the cooperation of all parties involved in the disagreement and with the best interests of all parties in mind. Companies can use ADR, if the dispute in which the company is involved in can be resolved amicably through a settlement.
- Flexible: The parties have more control over the outcome than a court-ordered legal action since they have the freedom to choose their method of resolution and the arbitrator or mediator engaged. This also allows individuals or enterprises to concentrate on the core issue at hand rather than the procedural regulations.