ADR is simply a catch-all phrase that refers to any process outside the formal court system used to assist in the resolution of disputes or claims between parties. While there are many benefits to using various ADR options, faster resolution of the dispute and cost effectiveness for both parties are perhaps the most obvious benefits. Two of the more common forms of ADR are mediation and arbitration.
Mediation refers to a more informal attempt of the parties to come together once preliminary facts and information are developed to discuss their issues and attempt to come up with some sort of resolution. This process is accomplished with the assistance of an independent third-party referred to as the mediator. While the mediator is often times an attorney or retired judge who will understand both the medical and legal issues involved with the claim, their only purpose is to listen and facilitate meaningful discussion that might lead to resolution of the claim. The mediator has no power to decide a case for one party or the other…that is strictly up to each individual party to determine whether they wish to resolve their claim. All information shared by the parties in the mediation phase is strictly confidential and cannot be used against either party in a subsequent proceeding.
Arbitration refers to a more formal proceeding than mediation, wherein an independent, third party, the arbitrator or a panel of arbitrators, is selected to hear facts and consider evidence regarding the claim. The arbitrator(s) will be an attorney(s) who will understand both the medical and legal issues involved with the claim. However, unlike mediation, the arbitrator(s) upon hearing the evidence will issue a final, binding decision on the parties. The arbitration process is generally governed by an agreed upon set of rules, various state laws, or a combination thereof. As there can be broad variations in procedural rules for arbitration, it is important that each party obtain, read, and understand the specific procedural rules that govern your agreement to arbitrate.
Copyright 2010 DJS Administrative Services, Inc.. All rights reserved.