ALTERNATIVE DISPUTE RESOLUTION NEGOTIATION Parties communicate with each

ALTERNATIVE DISPUTE RESOLUTION

NEGOTIATION Parties communicate with each other and make their own decisions. The outcome can be written into a contract that is final and binding.

MEDIATION A selected neutral third party facilitates parties making their own decision. The outcome is an agreement to which both parties are committed; the outcome can be written into a contract that is final and binding.

MEDIATION Mediation is the most rapidly growing form of ADR Success rates range from 80 -85 percent Mediator’s role is to provide a relaxed, informal, and comfortable environment where parties can discuss their conflict openly and honestly to arrive at a potential solution.

ARBITRATION A selected third party receives statements and arguments from both parties and acts as the decision maker. The arbitrator’s decision is final and binding. Arbitrator Party 1 Party 2

ARBITRATION v. LITIGATION Factor Arbitration Litigation Speed Days to weeks Months to years Procedures More business-like but less formal than litigation Follows formal, complex rules and procedures Costs Significantly less Costly depending on length of trial Privacy & Confidentiality Finality Conducted in private; May be conducted in public not publicly disclosed and may be reported by media Resolution may permanently satisfy both parties There is a winner and a loser

Questions • Which type of dispute resolution did Elaine and Kramer use? • Which type of dispute resolution did Erin and Ed use in Erin Brokovich? • Which types of civil actions might use alternative dispute resolution and why?