What is the legal effect of a decision reached at an alternative dispute resolution hearing?

In Arizona, the legal effect of a decision made at an Alternative Dispute Resolution (ADR) hearing depends on the type of ADR process that was used. If the parties choose a non-binding ADR process such as mediation, arbitration, or a settlement conference, the decision that is reached at the conclusion of the hearing is not legally enforceable. This means that either party is free to reject it, even if both originally agreed to the outcome. However, if the parties choose a binding ADR process such as binding arbitration or binding mediation, the decision that is made at the hearing is legally enforceable, meaning that it must be followed and respected by both parties. Additionally, the decision is legally binding in the same manner as a judgment from a court of law. This means that it can be enforced through court orders, such as garnishments or levies, if a party chooses to ignore the decision. In Arizona, it is important to understand the difference between binding and non-binding forms of ADR in order to make an informed decision about which process to choose for resolving a dispute. The legal effect of a decision reached at an alternative dispute resolution hearing will depend on which type of ADR process is chosen.

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What is the legal effect of a decision reached at an alternative dispute resolution hearing?

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