Benefits and Disadvantages of ADR
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Benefits and Disadvantages of ADR

Benefits and Disadvantages of ADR

ADR has several advantages over litigation:

  • Suitable for multi-party disputes
  • Lower costs
  • Likelihood and speed of settlements
  • Flexibility of process
  • Parties' control of process
  • Parties' choice of forum
  • Practical solutions
  • Wider range of issues can be considered
  • Shared future interests may be protected
  • Confidentiality
  • Risk management

However, ADR less suitable than litigation when there is:

  • A need for precedent
  • A need for court orders
  • A need for interim orders
  • A need for evidential rules
  • A need for enforcement
  • Power imbalance between parties
  • Quasi-criminal allegations
  • Complexity in the case