To set any dispute Alternative Dispute Resolution (ADR) is a collective term where it is required to have an independent 3rd party but formal court hearing is not necessary. ADR includes mediation and arbitration. In applicable circumstances ADR scheme can offer certain benefits over going to the court in that they can be more elastic, quicker process, and not expensive as court. Some techniques of ADR such as mediation and arbitration are often used as alternate of litigation but ADR does not yet have any fixed definition. The term ADR comprises a vast range of processes. To meet the unique need of legal dispute, the court is frequently adopting existing ADR. The definition of ADR is continuously expanding to add new methods. There are many methods to resolve legal dispute other than traditional litigation, but the most commonly used methods are mediation and arbitration. Businesses are nowadays selecting ADR as the alternative of court system. When parties can realize that the dispute cannot be resolved through mediation they may go for signing contract to resolve the matter through arbitration.
Mediation is the highly growing ADR method, it is also known as conciliation, and mediation creates an independent forum where parties can resolve their own dispute without having formal litigation. To conduct mediation, a third party is required. It also requires the commitment of the parties to resolve their own dispute. Business organizations frequently embark on litigation to resolve employment dispute because the company administration or management always has adequate knowledge of understanding on consequences of this type of litigation and the mental outcome it may on the business at hand, if litigation is started in the court it is hard to stop and sometimes almost impossible. In the court, each step of proceeding leads to the next step. Businesses frequently discover themselves resolving cases at court very costly and emotionally stressful.
When any employee makes claim against his or her employer, it is often an attention of both parties to try to resolve the dispute as early as possible through the mediation process. With the help of an expert neutral third party they resolve their dispute with less cost, limited time and without having tension of court litigation.
Customer-trader dispute
A customer can bring any complaint against any business or their product. Again, it is recommended to resolve the dispute through ADR mediation process rather than going to court for formal litigation. If a customer sues any company in the court, it takes years to resolve the matter. Both the parties incur losses. For the company, it is the loss of its reputation and for the customer this is timely process and costly. Research conducted by Ofcom (a review of consumer complaints procedures consultation, 2009) observed that customer of telecom who went to the court 30% of the complaints remained unresolved after 12 weeks, and these customers were much more likely to suffer financially or through stress. But those who did use ADR process through a mediator operator, 91% complaints were resolved within 12 weeks.
Arbitration
Arbitration is the process of settling a dispute with the help of a panel of arbitrators who act as judges. There are two reasons to use arbitration to resolve dispute:
1. People agreed before the dispute arose
2. People want because people prefer arbitration
Arbitration is frequently used in collective dispute. For example, if any trade union decides to strike because it is not happy with the decision of its employer, then it may agree to have an independent arbitrator panel to consider the situation and deliver a decision. Arbitration can also be used to resolve a personal dispute such as employer-employee, it's faster and less formal than a traditional Employment Tribunal.
Parties involved in dispute of supplying goods and services that they are unable to settle through negotiation, may wish to consider using an arbitration process. European Union Commission considers online arbitration system for cross-border. According to the European Commission's summary of consultation responses, commercial transaction dispute should be resolved through ADR. It suggested that ADR should be a means to resolve dispute with traders.
ADR is far effective and rational process than formal court system. The main advantage of ADR is that people can solve their own problem. They may be awarded compensation; the process is less formal than going to a court and the procedure is confidential. If businesses and individuals use ADR process to resolve their regular problem, then the work pressure on formal court will be less. So people should use ADR scheme.
The writer is researcher on South Asian politics and political economy
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Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.
Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.