Abstract
Companies that formalize an internal problem-resolution program may avoid huge legal costs and boost employee morale. Alternative Dispute Resolution (ADR) avoids time-consuming and expensive court trials. ADR may include mediation, arbitration, mini-trials, summary trials, and peer review. Whatever ADR format is used, it gives both sides of a dispute the chance to resolve their conflict-and in so doing saves time and money and relieves the stress associated with litigation. Some courts now require settlement conferences to encourage resolution of disputes outside the courtroom. ADR can be part of a company's formal internal grievance procedure or a company can propose an ADR approach on case-by-case basis. Mediators or arbitrators tend to be less emotional and perhaps more objective than jury members, whose emotions tend to cause high-cost verdicts. ADR can result in a prompt resolution (compared with courtroom backlogs, which can mean years of delay), and ADR can result in sizable reductions in legal fees and other costs.
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