What is Alternative Dispute Resolution?

Two-minute summary

Alternative Dispute Resolution (ADR) refers to out-of-court processes used to resolve disputes efficiently, often more cost-effectively and privately than litigation. Common forms include mediation, conciliation, and arbitration, each involving a neutral third party to assist in resolving the conflict.

• Mediation involves a facilitator who helps parties explore settlement options but does not impose an outcome.

• Conciliation adds subject-matter expertise and limited advisory input.

• Arbitration is a formal process where an arbitrator makes a binding decision, similar to a private judge.

ADR can be initiated voluntarily, required by contract, or ordered by a court. It is especially valuable in commercial, employment, and technical disputes where confidentiality and speed are priorities.

Farahs Legal advises and represents clients in all forms of ADR, helping resolve disputes strategically and without unnecessary court intervention.

Full article

Disputes are an inevitable part of doing business—but resolving them through court proceedings can be costly, time-consuming, and emotionally draining. Alternative Dispute Resolution (ADR) offers parties a faster, more cost-effective, and often more collaborative way to resolve conflict without the need for formal litigation.

At Farahs Legal, we help clients explore and engage in a range of ADR processes to achieve efficient and commercially sound outcomes.

What Is ADR?

ADR refers to a group of processes where an impartial third party assists disputing parties in resolving their issues outside of court. As defined by the National Alternative Dispute Resolution Advisory Council (NADRAC), ADR is:

“An umbrella term for processes, other than judicial determination, in which an impartial person assists those in a dispute to resolve the issues between them.”

ADR can be undertaken voluntarily, pursuant to a contract, or under a court order.

Key Types of ADR

1. Mediation

Mediation involves a neutral third party (the mediator) who helps parties identify the issues, explore options, and work towards a mutually agreeable outcome. The process is confidential and typically conducted on a without prejudice basis—meaning what is said cannot be used in later proceedings.

The mediator does not make a decision or impose a resolution but facilitates constructive dialogue.

Types of Mediation:

• General or Shuttle Mediation: The mediator meets separately with each party and relays information between them to help move negotiations forward.

• Co-Mediation: Two mediators jointly facilitate the process, which can help parties feel reassured about impartiality.

• Med-Arb (Mediation-Arbitration): A hybrid process where unresolved issues in mediation proceed to arbitration before the same or a different neutral.

When is Mediation Suitable?
Mediation is ideal when parties wish to preserve relationships, require flexibility, or seek a confidential and cost-effective resolution. Even where a final settlement isn’t reached, it can narrow issues and improve understanding between parties.

2. Conciliation

Conciliation is similar to mediation but involves a conciliator with subject-matter expertise, who may offer advisory guidance on legal or commercial outcomes.

The conciliator does not make binding decisions but can suggest possible solutions based on their expertise.

When is Conciliation Suitable?
Conciliation is particularly useful in disputes where parties value technical input or expert insight, such as employment, regulatory, or industry-specific matters.

3. Arbitration

Arbitration is a more formal, private dispute resolution process where an independent third party (the arbitrator) hears the evidence and arguments and makes a binding decision (called an award). It closely resembles court proceedings but is conducted confidentially and can be tailored to the parties’ needs.

Arbitration may be:

• Voluntary;

• Contractually required; or

• Court-ordered in certain circumstances.

Key Features of Arbitration:

• The process is structured, often involving written submissions, discovery, and hearings.

• Parties usually agree in advance that the outcome will be binding and enforceable.

• Appeals or reviews are limited unless expressly agreed.

When is Arbitration Suitable?
Arbitration is well-suited to commercial disputes involving technical issues, international parties, or where confidentiality and finality are paramount.

Why ADR?

ADR processes offer a range of benefits over traditional litigation:

• Cost savings

• Faster resolution

• Confidentiality

• Control over process and outcomes

• Preservation of business or personal relationships

At Farahs Legal, we work closely with clients to assess the most appropriate ADR strategy for their unique situation—whether through early negotiation, mediation, conciliation, or arbitration.

How Farahs Legal Can Assist

If you’re facing a dispute and want to explore a cost-effective and pragmatic alternative to litigation, our experienced team can assist in:

• Advising on the most suitable ADR process for your matter

• Representing you in mediation, conciliation, or arbitration

• Drafting or reviewing ADR clauses in contracts

• Enforcing or challenging arbitration awards

Contact us for expert legal guidance on alternative dispute resolution options.