Respond to both classmates 100 words a piece
Question they had to answer (Discuss the different types of alternative dispute resolutions including, negotiation, mediation, and arbitration. For example, which form of ADR is binding and which is not?)
There are 5 different forms of ADR for civil cases. Mediation, arbitration, neutral evaluation, settlement conferences, and community dispute resolution programs. These different types of alternative disputes focus on ways to settle disputes without litigation. The first is mediation. Mediation commonly also referred to as facilitation, leaves control of the outcome to the parties. An impartial mediator helps the parties try to reach a mutually acceptable resolution to the dispute. The second is Arbitration. Arbitration is the most formal of the ADR procedures and takes the decision making away from the parties. The arbitrator hears the arguments and evidence from each side and then decides the outcome of the dispute. Third is Neutral Evaluation. Neutral Evaluation is a procedure where each party presents their case to a neutral party who gives an opinion on the strengths and weaknesses of each parties’ evidence and arguments and how the dispute should be settled. The forth is Settlement Conferences. The parties will meet with the judge or a referee to discuss a possible settlement of their dispute. The judge will not make a decision but will assist the parties in evaluating the strengths and weaknesses of their case. Lastly is Community Dispute Resolution Program. This type of mediation is tailored to handle a wide range of private and public conflicts such as landlord/tenant, business dissolutions, land use, public education or adult guardianships/conservatorships. Most of the cases are referred by the courts. Arbitration can be “binding” or “non-binding” in Michigan. Binding arbitration means the parties have waived their right to a trial, agree to accept the arbitrator’s decision as final and, usually, there is no right of appeal of the decision.
Alternative dispute resolutions (ADR) have been in use for many years. ADR gives parties alternatives to avoid legal delays, backlogged court cases, and high costs associated with legal actions (Jennings, 2017, p. 103). Another benefit of using ADRs is the protection of parties’ privacy versus using a public jury trial court. Some common ADRs utilized today are negotiation, arbitration, and mediation.
Negotiation is an informal ADR where parties or companies agree on a settlement between themselves with minimal input from outside parties. An example would be if a company has a primary supplier experiencing financial strains and the supplier request a cash advance on an open equipment order. Afterward, the company agrees to the cash advance if equipment can be delivered at an earlier date and discounted price.
Another ADR is arbitration which settles and concludes a legal dispute between two parties. Arbitration is a formal process that must be in adherence with the American Arbitration Association (AAA) and is supported with a written contractual agreement (Jennings, 2017, p. 103). Basically, the arbitrator takes on a judicial role in rendering a decision without actually being a judge. The arbitration can be binding or nonbinding depending on the accepted clauses.
Mediation takes place when a mediator helps the parties get a better understanding of the legal issue at hand and coaches them into rendering a solution regarding the legal issue. The mediator does not issue a decision but instead helps the parties reach a viable solution (Jennings, 2017, p. 108). Mediation is usually not binding unless the solution or agreement calls for it to be binding.