For most businesses the advantages of ADR are numerous.
If your business does not have a line-item budget for litigation costs, then there is no question that ADR is a choice that should be looked at carefully when a dispute arises. Even large companies that do have a budget for litigation expenses take advantage of ADR as a way of reducing costs and limiting exposure. But for small to mid-size businesses the choice of ADR is unquestionably a smart one.
Five Key Advantages:
Advantage 1
It is more cost-effective and expeditious than court litigation.
Advantage 2
It usually provides a better result for the parties because they develop their own mutually beneficial solutions.
Advantage 3
It avoids an unpredictable result by a judge or jury.
Advantage 4
It permits the parties to "speak" openly, freely and without the constraints of a formal judicial process and rules of evidence.
Advantage 5
It offers an opportunity for the parties to develop new ways of thinking about the problem in order to come to a beneficial resolution.