Dispute Resolution: Methods, Benefits, and Careers Explained

Introduction: Why Dispute Resolution Matters Today

Dispute resolution has become an alternative for many businesses, courts, and community agencies as a faster and friendlier option to litigation. A lawsuit can take years and cost hundreds or thousands of dollars. Many disputes don’t require the court's formal dispute resolution process. Issues like community disputes and small claims cases can be readily resolved by parties meeting and discussing their problems rather than asking a judge to make a decision for them.

Instead of dragging parties through court, many agencies are turning to mediation, arbitration, and conciliation to help them resolve their disputes themselves.

What Is Dispute Resolution?

In general, dispute resolution refers to the various methods used to help parties come to a solution to their conflicts without resorting to litigation. All ADR methods involve bringing the parties together with the assistance of a neutral third party, such as a facilitator or mediator, who can review the situation with them and help them reach an amicable resolution.

In a traditional court, each side presents its case to a judge. Through this process, each side attempts to highlight its strengths and downplay its opponent’s case. Litigation is known as “adversarial” for this reason. The judge decides which party has a stronger case and rules in that side’s favor.

The process is different in ADR. The facilitator asks the parties what they want to accomplish, to consider the dispute from the other party’s perspective, and then asks each side what they would be willing to give up for a harmonious resolution of the case.

ADR works best when both parties are otherwise in agreement but have a conflict about a particular issue. Uncomplicated divorces, where the couple agrees about the property division but needs help with visitation schedules, are good candidates for ADR.

Main Types of Dispute Resolution

There are four basic types of alternative dispute resolution, depending on how involved the neutral party is with the disputing parties. The essential part about ADR is that the disputing parties are directly involved in the resolution. If a judge or attorney takes the negotiations out of the parties’ hands, it becomes litigation again.

Mediation

In mediation, a neutral facilitator or a team of facilitators works with the parties to reach an agreement. Mediators often work in small claims courts and community agencies to resolve neighborhood conflicts. The goal of mediation is to assist the parties in creating their own solution to the problem.

For example, in a neighborhood fence dispute, the parties might agree to split the cost of a land survey to determine the property line before building a new fence.

Mediation can be binding if the parties agree to sign a mediation agreement and file it with the court.

Arbitration

Arbitration is more formal than mediation. It may involve an administrative law judge (ALJ) who hears evidence and facts presented by both sides and issues a binding decision.

Arbitration is often used by businesses in contract disputes and other minor issues that don’t require full litigation. Arbitration is less adversarial than court because the rules of evidence are relaxed. Parties may present evidence that would be barred in court, and the ALJ can ask both sides questions about their position.

Arbitration is binding on both parties, but in some states, it may be subject to appeal to the court.

Mediation/Arbitration (Hybrid)

Parties can agree to a hybrid approach, in which mediation is used first and arbitration is pursued if the parties cannot reach an amicable solution. Parties may also want the ALJ to sign off on their decision, in contract or business situations where the agreement may be appended to a formal contract or other document.

Conciliation

This method is becoming popular in family law courts. Conciliation involves the parties and their attorneys meeting in a semi-formal setting. The parties agree to abide by court rules of discovery and evidence, but not to bring their disagreements before a judge for a hearing.

For instance, if two parties in a divorce are in the discovery phase and one party requests additional time to produce documents, the court would set a hearing and let a judge decide whether it was reasonable. In conciliation, the attorneys agree among themselves on how much time to allow for the production.

Conciliation keeps the case moving forward without pausing for court scheduling. In contentious family law cases, this can prevent matters from getting bogged down in a busy court docket.

Benefits of Dispute Resolution

Alternative dispute resolution offers several benefits over litigation. The advantages of mediation over courtroom litigation, or as an adjunct to litigation, can include:

• Speed and efficiency. Since the goal of mediation is to ask the litigants to craft their own solution, there is no need for the protracted process of discovery, depositions, and hearings.

• Flexibility. Mediation encourages the parties to devise their own solution to their own specific issue. Rather than a judge fitting the law to a set of facts, mediation lets litigants decide what they want their solution to look like.

• Cost. Mediation is less expensive because it generally does not involve attorneys, legal paperwork, or courtroom proceedings. Even if professional mediators are involved, their fees are typically lower than an attorney’s fees.

The informal, facilitated process means parties are not facing each other as adversaries in a courtroom, but as allies in a collaborative procedure.

Challenges and Limitations

Despite the tremendous benefits of ADR, it is not ideal for all situations. Mediation and arbitration are not suitable for situations where the parties are grossly unequal or where both sides cannot “give up” something of equal value. Some situations where ADR is not indicated include:

• Criminal cases. If the State is one party to the case, ADR is not possible. The State represents all the people, and negotiations are conducted as plea bargains rather than as solutions to a problem. Mediation may come into play in juvenile courts where restorative justice is a consideration.

• Class action/mass tort matters. Any situation where mass injunctive relief, public interest, or multiple parties are involved is not suitable for mediation, which is a one-on-one negotiation.

• Gross power imbalances. Family law cases involving domestic violence and similar cases should not be mediated. The parties must be roughly equal and have equivalent negotiating ability.

Finally, mediation and arbitration lack the formal power of a court order. Parties must negotiate in good faith for the negotiated agreement to be enforceable. Most ADR agreements contain a clause permitting either side to appeal or take the case to court if the other side does not abide by the agreement.

Careers in Dispute Resolution

As with any legal career, ADR positions are increasing slowly but steadily. The Bureau of Labor Statistics projects a growth rate of about 4% annually for mediation and arbitration careers. Some dispute resolution careers include ombudsmen, conflict resolution in human resources and business, and case managers.

ADR professionals may need to think outside the box to find the career of their dreams. ADR falls into the professional line between legal professionals and human resources. Labor relations, international and domestic conflict resolution, and even contract negotiation all benefit from skilled mediation techniques.

Law schools and legal education departments have begun offering degrees and certificates in dispute resolution. Although a formal degree is not necessary, having an ADR degree can give applicants a leg up in the job market. The University of Missouri and Columbia University both offer degrees or certificates in ADR.

Conclusion

Alternative dispute resolution is a fast-growing industry with strong job prospects for those interested in a legal-adjacent career. There are educational opportunities for those seeking a degree in ADR. You can also find training through the courts and community agencies.