Alternative Dispute Resolution (ADR) describes the processes that can be used instead of going to court to resolve a disagreement or dispute about an issue. These processes help people to resolve the dispute, reach an agreement and move forward with their lives. They are usually run with the assistance of an independent, impartial third party who will create conditions favourable to reaching an agreement between the parties. They provide cost effective, efficient and time saving alternatives to litigation.

ADR processes use a range of methods. Some such as mediation are designed to be facilitative where the independent third person helps people identify issues and reach an agreement. Facilitative processes are particularly useful where the parties will have an ongoing relationship after the dispute. Some ADR processes are advisory which means the independent person gives advice about the legal merits of the parties’ positions and has a greater influence on the outcome. Other ADR processes such as arbitration are determinative which means the independent person can actually make a decision or make a determination about the issues in dispute. For these processes to work you generally need to keep an open mind and be open to compromise. Mediators will often say that no one gets everything they want from a mediation. The aim of facilitative dispute resolution is a win-win outcome where everyone agrees to accept a little bit of what they want and a little bit of what they can live with in order to put an end to the conflict. Determinative processes are at the other end of the spectrum and are more like an informal court process where the parties present their evidence and the decision is made for them.

There are different types of ADR processes. The most common ADR options available are:

• negotiation;
• mediation;
• conciliation; and
• arbitration.

The laws affecting each of these processes may vary in each state and territory so you will need to check which laws apply to you.

ADR processes can be used for a wide range of issues including commercial, employment, family, neighbourhood or community disputes. There are a range of different services and practitioners available. Some offer national accreditation and some are state or territory based. Some people work as private practitioners and others are employed within an organisation.

It is a good idea to do some research to find out which process will best meet your needs especially as there are some circumstances where the law or the courts will mandate (require) you to engage in an ADR process before proceeding to a hearing. This is most common in family law where the court requires parties to engage in family dispute resolution (a specialised form of mediation) with an accredited Family Dispute Resolution Practitioner (a specifically trained and accredited mediator) before they can have their case listed in the court. Mediation is also mandatory for certain civil matters being heard in Federal courts which require the parties to make a genuine effort to resolve their dispute before proceeding to litigation.

Each ADR process is different and offers different advantages and disadvantages.

This Legal Guide on Mediation and Alternative Dispute Resolution provides individuals with information about the four main types of ADR: negotiation, mediation, arbitration and conciliation. It will help readers determine which method of ADR is most suitable for their situation. Before making important decisions it is advisable to obtain legal advice specific to your situation. LegalEagle’s™ free directory profiles all lawyers in Australia. You can use it to Find a Lawyer near you.

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Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.