Informal dispute resolution is a process where conflicting parties meet with a third party to reach a resolution without legal proceedings. It often costs less and is faster than a court case. Mediation is a common form, where the mediator helps parties reach a win-win solution. Negotiations can also lead to a resolution. Written agreements can be submitted to a court for approval.
Informal dispute resolution is a process that litigants and potential litigants can undertake to avoid legal proceedings. The conflicting parties meet with a third party who facilitates discussions and negotiations so that the parties can reach a resolution, or they negotiate on their own. This type of resolution is often referred to as alternative dispute resolution, and it often costs less to resolve conflicts this way than a civil lawsuit. Some courts and regional statutes require parties to go through an informal dispute resolution process prior to trial in order to reach an agreement. Court systems may have an office dedicated to alternative dispute resolution, and if not, parties often have to seek out a private third party.
Individuals often choose informational dispute resolution because the process is much faster than legal proceedings. A court case could take more than a year, while alternative dispute resolution could take a month or two. The other reason it’s so popular is that parties feel like they have more control over the outcome. Rather than leaving it up to jurors to decide who is credible or what evidence is reasonable, parties often have a better chance of getting the outcome they want when they avoid legal proceedings. A written agreement is often made at the end of an informational resolution of a dispute and can be submitted to a court to make it into a binding order subject to a judge’s approval.
Mediation is a common form of informal dispute resolution. The mediator does not make the decision for the parties or decide on the case. The mediator’s job is often to identify what both parties want and help them reach a win-win solution. For example, in an auto dealership dispute, the dealership representative and the consumer might work with a mediator to resolve the financial loss that both parties have suffered. The consumer may or may not have filed a lawsuit, and some jurisdictions require parties to participate in mediation in those cases.
When the parties do not seek the assistance of an impartial third party, they are often able to reach an agreement through negotiations. Reaching an agreement in this way is a form of informal dispute resolution, because the parties are able to resolve their conflict outside the judicial system. Some judges during the trial will encourage the parties to meet and try to negotiate a settlement, and in some cases the parties are able to do so. In other cases, individuals have avoided legal proceedings altogether by negotiating a settlement that benefits everyone involved.
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