Right Time for Binding ADR Process | PhloxADR
By: Dr. Justin Wood, Th.d, CJME

A dispute may be ready for a binding ADR process at any time.  In certain business or consumer disputes, the parties may be bound by contract provisions that require the use of a binding ADR process like arbitration. State laws requiring a binding ADR process may also apply to certain cases.  Even if they are not contractually or statutorily bound to binding ADR, the parties may elect to submit to a binding process because it is the most cost effective way to resolve a matter.

While some issues may have been resolved in a mediation, the remaining unsettled issues can be the focus of a subsequent binding arbitration process.  A binding ADR process is the route to take when the parties have decided that they do not want to negotiate in mediation or go through the court system, which will publicly expose the details of their dispute.

Though court litigation is a binding process it can often result in a lengthy litigation battle with very expensive legal bills which may not be recoverable. After the judicial ruling, the party may not simply “pay up” so additional litigation and expensive legal bills accumulate in an effort to collect on the judgement. One of the largest drawbacks to litigation is the appeal process, which can take months if not years and again comes with VERY expensive legal bills.

The purpose of binding ADR processes, namely arbitration, is to reduce time, simplify the process, cut extravagant legal expenses and curtail the lengthy appeal process. This makes for a streamlined and efficient process over court litigation.

Please contact us to see if a binding ADR process is right for your dispute.

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