ALTERNATIVE DISPUTE RESOLUTION BLAW 202 - ADR ALTERNATIVE DISPUTE RESOLUTION - Definition of ADR - Benefits of ADR - Common types of ADR - Global dimensions of ADR

Definition of ADR: Resolving legal disputes through methods other than litigation.

Main Benefits of ADR (compared to litigation) 1) Usually less time consuming 2) Usually less costly 3) Parties choose many details 4) Less publicity/more confidential 5) Less adversarial process 6) ADR decision may be easier to enforce

Common Types of ADR 1) Negotiation & Settlement 2) Arbitration 3) Mediation

1) Negotiation & Settlement a) So common, not even officially recognized as ADR b) Parties come together informally (w or w/out lawyers) c) No decision-maker involved d) Most cases settle using this process

2) Arbitration a) Most widely-used method of ADR b) Parties submit dispute to a neutral decision-maker c) Arbitrator is often chosen & paid for by the parties d) No discovery process; relaxed rules of evidence e) Arbitrator usually asks lots of Qs f) Decision = “award” g) Choosing arbitration – Choice of Forum clause * Choice of Law clause is also very important! (will CISG rules apply to K, or some other law?)

3) Mediation a) Parties use a neutral 3rd party (mediator) to help them fix their differences b) Role of mediator is to facilitate communication and suggest ways for parties to solve problem c) Mediator makes no final decision d) Helps preserve relationship between parties e) If parties want mediation, they should specifically state it in a “Choice of Forum” clause

Global Dimensions of ADR 1) ADR is favored in most parts of the world 2) Many countries have bilateral treaties that promise to enforce arbitration awards 3) A major international UN Convention (“New York Convention”) also recognizes and enforces arbitration awards 4) Many international bodies have been created to handle arbitration cases - ICC’s Int’l Court of Arbitration (Paris + worldwide) - London Court of Int’l Arbitration (London + worldwide) - American Arbitration Association (USA + worldwide)