| ALTERNATIVE DISPUTE RESOLUTION
Q. If the demand letter doesn't work, do I have any other alternatives
before filing a
lawsuit?
A. Yes. In some circumstances you might prefer to try to resolve
your dispute through arbitration or some other form of alternative dispute
resolution outside the formal court system.
Q. What is alternative dispute resolution?
A. Nearly all states have established "dispute resolution
centers." These centers, which, depending on the state, may be known
as neighborhood justice centers or citizens' dispute settlement programs,
specialize in helping people who have common problems. For example, there
are centers that specialize in resolving disputes commonly encountered
by consumers, employers and employees, landlords and tenants, neighbors,
and family members.
Q. What is the difference between mediation and arbitration as
forms of dispute resolution?
A. In mediation, a trained mediator will help you and your opponent
resolve your disagreement by identifying, defining, and discussing the
things about which you disagree. This is an informal,
cooperative problem-solving process, and does not require you to know
the law or to hire a lawyer.
Arbitration, on the other hand, is a more formal proceeding in which you
and your opponent will be asked to present evidence and witnesses to the
presiding arbitrator, who usually will issue a written decision to resolve
the dispute. In many cases, the decision of the arbitrator is binding
on the parties and final. Most non-profit dispute resolution centers offer
mediation or arbitration services for free or at only a modest cost.
Q. When does it make sense to seek some form of alternative dispute
resolution?
A. These alternatives are generally faster, less expensive, and
less stressful than a traditional
lawsuit. On the other hand, some cases, either because of the high stakes
involved or the
complexity of the issues and facts, are simply better handled by courts
operating with the full
panoply of formal procedures and safeguards. Arbitration also may not
be possible unless both
parties agree in advance to accept the arbitrator's decision as final.
If either you or your opponent do not want to forego the right to appeal
an adverse decision, arbitration often will not be helpful. See the accompanying
chart for a more detailed look at the pros and cons of alternative dispute
resolution.
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