What is alternative dispute resolution (ADR)?

Alternative dispute resolution (ADR) is a process of settling disputes outside of the court system. In Virginia, ADR is a way for parties to resolve disputes without the need for a formal trial or hearing. ADR is a popular form of dispute resolution that is often quicker, less expensive, and more confidential than going to court. ADR can take on many forms and is often tailored to the specific dispute. Common forms of ADR include negotiation, mediation, and arbitration. Negotiation is an informal process between two or more parties to reach an agreement on a particular issue. Mediation is a process in which a neutral third party, known as a mediator, helps the parties discuss the issues in dispute and come to a mutually-agreed upon solution. Arbitration is a process in which a neutral third party, called an arbitrator, hears evidence from both parties and makes a binding decision to settle the dispute. ADR is often much faster and less expensive than litigation, and can be used to resolve disputes involving any subject. While it is not required in Virginia, ADR is generally encouraged when possible in order to save time, money, and reduce court backlogs. The ADR process can be confidential and does not require a lengthy trial or hearing, so it is beneficial to those wishing to resolve a dispute quickly.

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