Bankruptcy Section
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What is Alternative Dispute Resolution (ADR)?
Trials are high risk events. Before trial, the parties have the opportunity to settle their case through negotiation or some alternative form of resolution. Examples of ADR include mediation, non-binding arbitration, binding arbitration and judicial settlement conferences.
Because no one can predict with certainty the outcome of trial, most cases come to some kind of compromise. In mediation, the parties negotiate a settlement. Usually, each party is separated into a room and a mediator, a neutral third party, goes back and forth between the parties and delivers offers of settlement and counter-offers. No one person makes a decision as to the outcome, the settlement is completely dependent on the parties’ agreement. On the other hand, if a case is sent to arbitration, an arbitrator decides what happens, similar to having a judge decide your case.
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