Today I’d like to conclude my discussion of alternative dispute resolution (ADR) addressing the other two common ADR methods: arbitration and collaborative law.

For arbitration, participation is generally voluntary, though in many instances the parties may be compelled to participate in arbitration under back-to-work legislation or by a contract that was previously entered into. In arbitration, individuals (usually trained professionals or retired judges) are asked to act as the parties’ private judges to impose a binding resolution on the parties. They are called arbitrators.

Typically, the two parties each appoint one arbitrator, and the two arbitrators appoint the third. The panel of three hears the matter. Both parties prepare for their cases and make submissions to the panel of arbitrators. The panel, after hearing the evidence and submissions as presented by the parties, will render a binding decision that may be enforced by the courts.

Collaborative law is mainly used in family law proceedings, such as divorce and separation. Under collaborative law, both parties and their lawyers sign an agreement at the beginning of the process stating that the parties are taking the collaborative approach in solving the issues. If unfortunately, a mutually acceptable resolution cannot be reached through this method, neither lawyer may represent their clients in future court proceedings.

The lawyers’ main role under the collaborative approach is to coach their clients to work out an agreement on their own without the involvement of outside third parties, such as an arbitrator or a mediator. Other professionals, such as financial advisers and childcare specialists, may be invited to participate in the process. However, these experts do not impose conditions on the parties; rather, their duty is to assess the situation independently so that the parties may make informed decisions.

Is ADR always the preferred choice?

While ADR methods are generally more efficient and less expensive, they are not meant for everyone. For example, where there is an extreme power imbalance between the parties, ADR may not be suitable. If you wish to discuss whether your case is suitable for ADR, please do not hesitate to give me a call at 416 433 5531.