What are the rules for alternative dispute resolution?
Alternative dispute resolution (ADR) is a means of settling disputes outside of the courtroom. In Mississippi, parties may choose to use mediation, arbitration, or a combination of both to resolve their disputes. Mediation is a voluntary, informal, and confidential process in which a neutral third party helps to facilitate communication between the parties and encourages them to come to an agreement. The mediator does not make any decisions, but rather encourages voluntary negotiation between the parties. Arbitration is a more formal process, in which an arbitrator (a neutral third party) decides the dispute. The parties are limited in the ability to present evidence and introduce witnesses. Unlike a court hearing, the parties cannot appeal the decision of the arbitrator, and the decision is legally binding. In Mississippi, the parties can also agree to participate in a hybrid ADR process, which combines mediation and arbitration. In this process, the parties attempt to come to an agreement through mediation, but if no agreement is reached, then they proceed to arbitration to have the dispute decided. In any ADR process, both parties must agree to participate. If either party does not agree, then it cannot be used. The parties should also be aware that if an agreement is reached, it must still be reviewed and approved by a court of law to become legally binding.
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