Active dispute resolution

The fact that we live in a litigious society should come as no surprise. The current economic downturn, however, has caused many to rethink litigation as the only road to resolution. Whereas litigation divides parties, alternative methods unite disputants with the shared goals of actively resolving a matter and moving forward with life. Real estate disputes and many disputes generally, are ripe for other forms of resolution: alternative dispute resolution, known as ADR. Arbitration and mediation are two forms that have proven to be successful in resolving a variety of matters. Arbitration is the submission of a dispute to one or a panel of arbitrators who fairly and impartially decide a given matter. A decision known as an "award" is then issued. These decisions may or may not be final and binding depending upon the arbitration agreement or the arbitration provisions in the contract. The advantages in choosing arbitration are numerous: lower costs, speedier hearings and decisions, less formalized procedures and hearings conducted by neutrals with subject matter expertise. Mediation is the submission of a dispute to a neutral third-party who assists the parties in arriving at an acceptable resolution to a problem. The mediator does not decide the matter but encourages communication and brokers a resolution on behalf of the parties. The proceeding is confidential and allows the disputants to get to the heart of a matter and craft acceptable solutions themselves. A successful mediation results in an executed settlement agreement. Whether court-ordered or voluntarily agreed to, arbitration and mediation provide more rewarding alternatives to litigation. And although not appropriate for every conflict, ADR is fast becoming the method of choice for active dispute resolution. Donna Marinacci is an attorney, arbitrator and mediator in New York, N.Y.