What is alternative dispute resolution (ADR)?

Alternative Dispute Resolution (ADR) is the process of settling legal matters without litigation. Typical ADR options include mediation, conciliation and private adjudication facilitated by an objective third party. The steps in the ADR process depend on the option used, but all are less costly and time-consuming than litigation. One of the main reasons parties prefer ADR is that, unlike litigation, which is usually adversarial, ADR is often collaborative, allowing parties to understand each other’s positions, and, in many cases, come up with more creative solutions to the issues at hand.