Legal Resources Benefits of ADR
ADR provides great flexibility for the parties to design the process, choose the neutral, and achieve their own solution.
ADR keeps the power with the parties in dispute. They control the process and decision-making to find solutions that are mutually satisfactory to them.
- The use of ADR provides the benefit of confidentiality. Not only are all communications protected by the settlement communication privilege but the FERC has even stronger protections both through section 574 of the Administrative Dispute Resolution Act and through the FERC guidelines at 18 C.F.R. Sec. 385.606
- These protections encourage open communications to jointly problem solve solutions to resolve disputes.
Cost and Time Savings
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. Litigation can take much longer and cost a significant amount of money and resources.
Other Benefits of ADR and the Value of the Neutral DRS Staff
- Separate the problems from the emotions allowing for constructive dialogue on interests and less focus on legal positions
- Explores all parties’ interests to define issues and problems to be solved clearly
- Provides a safe space for parties to brainstorm a variety of options for resolution by expanding the pie and generating creative win-win solutions
- Establishes a fair process that takes into account objective criteria to evaluate possible solutions
- Focuses on parties’ business interests and not legal positions.
Read more on Dispute Resolution Service (DRS)