ADR consists of various methods of resolving legal disputes without resorting to conventional lawsuits. Most forms of ADR are quicker, more efficient, and more economical than traditional litigation in court. Under the Minnesota Rules of Court, nearly all civil legal disputes must go through some type of Alternative Dispute Resolution (ADR) process prior to trial.
The two most common forms of ADR are mediation and arbitration. In mediation, a neutral mediator, selected by both parties serves as a conciliator to help the parties reach a mutually acceptable settlement of their disputes. The mediator does not decide which side is right or wrong, but rather, assists the parties in reaching a mutually agreed upon resolution.
In arbitration, the parties select one or more neutral individuals who will rule upon their dispute. An arbitration hearing is conducted, which is similar to a court hearing, but much less formal. The parties agree, prior to the arbitration, whether the ruling will be binding or nonbinding. If the ruling is nonbinding, either party can opt not to accept it by filing the necessary notice, and then the case would be returned to the court system. If the ruling is binding, the grounds for appeal are very limited.
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