By Tairê Balzan and Layon Lopes
Alternative Dispute Resolution or ADR is a way to resolve disputes outside the courts. Negotiation, mediation, conciliation and arbitration are main procedures to resolve a conflict without litigation, and in Brazil, the ADR is increasing and becoming more popular.
As the known problems of the judiciary, such as the long time to resolve conflicts, the risk of a surprise decision, elevated costs, and the high level of tension between the parties, the alternative dispute resolution intends to resolve the conflicts in an efficient way. Therefore, these methods are also called Adequate or Appropriate Dispute Resolution.
In negotiation, parties will themselves resolve the conflict in a way that the parties agree. The negotiation is a form to resolve a problem without a third party and the best scenario of a negotiation is a win-win situation, in which all parties are satisfied.
Conciliation is an informal process in which an impartial third party assists the parties. The conciliator has an active role and can make suggestions for the parties. The conciliator improves the communication, gives potential solutions for the case, and presents a proposal to settle the dispute.
In mediation, an impartial third party assists the parties to resolve the conflict. The mediator facilitates the conversation between the parties. However, the mediator does give legal advice and does not impose a resolution for the case, the mediator assists the parties to clarify the conversation and to help the parties to resolve the case.
In arbitration, the parties submit the dispute to one or more arbitrators to decide about the case. The parties can negotiate about the process of the arbitration, the decisions are binding and the procedure is confidential.
Therefore, ADR refers to efficient methods to resolve a conflict. In Brazil, these methods are being more useful and these methods are being encouraged, due to the elevated numbers of processes in the judiciary.
* Layon Lopes is the CEO of Silva | Lopes and Tayrê Balzan is a member of the Silva | Lopes team.
