Dispute Resolution Service

Confidentiality

A promise of confidentiality allows parties to speak openly without fear that statements made during an ADR process will be used against them later.  Confidentiality can reduce posturing and destructive dialogue among parties during the settlement process.

• Communications are protected by the settlement communication privilege.
• FERC has additional protections through section 574 of the Administrative Dispute Resolution Act and the FERC guidelines at 18 C.F.R. § 385.606

Control and Flexibility

In ADR, parties typically play a greater role in shaping both the process and its outcome. In most ADR processes, parties have more opportunity to tell their side of the story than they do at trial. Some ADR processes, such as mediation, allow the parties to fashion creative resolutions that are not available in a hearing.

Cost and Time Savings

A dispute often can be settled or decided much sooner with ADR; often in a matter of months, even weeks, while bringing a matter to trial can take a year or more. When cases are resolved earlier through ADR, the parties may save money they would have spent on attorney fees, court costs, experts' fees, and other litigation expenses.

While ADR cannot guarantee a resolution will be achieved among the parties, ADR works well and succeeds when parties work cooperatively and focus on identifying and satisfying their concerns and interests.  The alternative to ADR is almost always litigation, which is generally more adversarial, with parties entrenched in their positions.

Neutrality

ADR can be a less adversarial and hostile way to resolve a dispute. For example, an experienced mediator can help the parties effectively communicate their needs and point of view to the other side. This can be an important advantage where the parties have a relationship to preserve.