Understanding Informal ADR: What is Categorized as Informal ADR?
Alternative Dispute Resolution (ADR) is a method of resolving conflicts out of court. There are two types of ADR: formal ADR and informal ADR. Formal ADR refers to a process that is guided by rules and regulations, with a neutral third party, while informal ADR does not. This article delves into what is categorized as informal ADR.
Types of Informal ADR
Informal ADR includes various types of conflict resolution methods that do not have established rules, regulations, or procedures. The following are some common types of informal ADR:
Mediation
Mediation involves a trained and impartial mediator who helps the parties involved in a conflict reach a mutually acceptable solution. The mediator helps the parties communicate, negotiate, and see each other’s perspectives. Mediation is less formal than traditional litigation and can be tailored to the specific needs of the parties.
Arbitration
Arbitration is usually seen as a formal ADR method, but it can be informal as well. In informal arbitration, the parties agree to have a neutral third party make a decision on the dispute, but without strictly adhering to the rules and regulations of formal arbitration.
Collaborative Law
Collaborative law is a process wherein the parties involved in a dispute work together to reach a solution. Each party has his/her attorney, and the attorneys work together towards a mutually acceptable solution. The process is usually done in a non-adversarial way, with the parties working together to reach a common ground.
Benefits of Informal ADR
Informal ADR has several benefits, such as:
Cost-Effective
Informal ADR is usually less expensive than formal ADR. Parties involved in an informal ADR process usually do not have to pay for court costs, expert witnesses, or lawyers.
Controlled Outcome
Parties involved in informal ADR have more control over the outcome of the dispute. They can agree on a solution that is mutually acceptable, rather than have a judge make a decision for them.
Confidentiality
Informal ADR is usually confidential, which means that the parties’ private matters are kept out of the public eye. This can be especially important in cases where the parties involved want to protect their reputations or avoid negative publicity.
Conclusion
In conclusion, informal ADR refers to various conflict resolution methods that do not have established rules, regulations, or procedures. Some common types of informal ADR include mediation, arbitration, and collaborative law. The benefits of using informal ADR include cost-effectiveness, controlled outcome, and confidentiality. It is important to note that while informal ADR methods are less formal than traditional litigation, they should still be approached with the same level of professionalism and respect for all parties involved.
