ADR 101 PART 2: TYPES OF ALTERNATIVE DISPUTE RESOLUTION MECHANISMS

In my last blog post on Alternative Dispute Resolution (ADR), I gave a general introduction and briefly mentioned the common types of ADR, like mediation, arbitration, negotiation, and conciliation. That post was more of an overview just to get us started. In today’s post, I want us to go a little deeper. I’ll be breaking down each type of ADR one by one, what it really means, how it works, its main features, and the kinds of situations where it’s most useful. This is a simple guide to help you understand the different ways people can resolve disputes without going to court.

1. MEDIATION 

Mediation is a structured and voluntary process where a neutral third party, called a mediator, assists disputing parties in resolving conflict through the use of specialized communication and negotiation techniques. All participants in mediation are encouraged to participate in the process actively. The mediator doesn't make decisions or take sides but creates a safe space for open, respectful conversation.

Mediation can take different forms, depending on the mediator's approach. Depending on their style, a mediator might simply guide the conversation and help each person understand the other’s perspective (facilitative mediation), or they might go a bit deeper by helping clarify issues and explore possible outcomes without giving direct advice (evaluative mediation).

Mediation is different from regular negotiations because it follows a clear structure and timeline, and it's often more focused and solution-driven. Unlike a judge or arbitrator, mediators do not have the authority to make binding decisions, ensuring that the resolution reflects the voluntary agreement of the parties involved.  

It's commonly used in many areas, like family issues, workplace disagreements, business conflicts, and even international or legal matters. The main goal is to help the people involved find a solution that works for them, not one that’s imposed by someone else. 

The advantages of mediation include being cost-effective as it is generally less expensive than litigation, time-saving , private and confidential, and it encourages collaboration and can help maintain or improve relationships between parties. However, the disadvantages include non-binding agreements and therefore enforcing them may be more challenging, potential power imbalances hindering the effectiveness of mediation and an unwillingness of one or both of the parties to cooperate can make the whole process a waste of time, effort and money. 

2. ARBITRATION 

Arbitration is a formal method of dispute resolution involving a third party neutral who makes a binding decision to resolve a conflict between two or more parties. The third party neutral, the arbitrator, renders the decision in the form of an arbitration award. The role of an arbitrator is similar to that of a judge, though the procedures are less formal, and arbitrators are often an expert in their own right. This process can be tailored to suit parties’ particular needs.

Arbitration is often used for the resolution of commercial disputes, particularly in the context of international commercial transactions. It is often preferred over going to court because it gives the parties more control over the process. For example, they can choose the laws that will apply, select their own arbitrators and even pick the language to be used.

Some of the advantages of arbitration include it generally moves faster than court proceedings, can be more cost-effective than litigation, can be kept confidential and binding arbitration decisions are generally final and not subject to lengthy appeals, which can save time and resources. 

Some of its disadvantages include once parties agree to arbitrate, they often give up the right to take the same case to court hence it can be hard to challenge an unfair decision since appeal options are very limited, there is a risk of bias, particularly if the parties are responsible for selecting the arbitrator, complex arbitration cases can incur substantial costs, including arbitrator fees and the process may lack full disclosure or discovery. 

That brings us to the end of today’s post! So far, we’ve looked at mediation and arbitration, what they are, how they work, and their advantages and disadvantages.  These are just two of the main ADR methods, and there’s still more. Next week, I’ll be diving into the remaining three: negotiation, conciliation, and Traditional Dispute Resolution Mechanisms (TDRMs), so stay tuned! 

 

 

 

 

Disclaimer- The information provided is for general informational purposes only and should not be considered as professional advice. Please consult a qualified professional for specific guidance. 

REFERENCES 

Curley Business Law. (2023, July 28). What are the advantages and disadvantages of mediation?

Wikipedia contributors. (2025, June 16). Mediation. In Wikipedia, The Free Encyclopedia.

Wikipedia contributors. (2024, May 25). Arbitration. Wikipedia 

The Chartered Institute of Arbitrators, Kenya Branch. (n.d.). Arbitration. CIArb Kenya