Alternative Dispute Resolution (ADR) Techniques

Alternative Dispute Resolution (ADR) Techniques

a) Negotiation

In negotiation, each party presents their case and proposes their desired outcome. The goal is to reach a mutually agreeable solution. Parties manage their own issues, presenting their case and choosing what information to disclose or conceal during the negotiation process. Sometimes, direct communication between parties is difficult, which leads to other ADR methods.

b) Mediation

Mediation is used when parties are willing to reach an agreement but struggle to communicate directly. A neutral third-party mediator facilitates communication, helping the parties reach a resolution. The mediator does not make a ruling but guides the conversation. Mediation is considered successful when an agreement is reached. This process is governed by specific legislation, such as the Act of Mediation of Civil and Commercial Matters and Directive 2008/52/EC. Mediation is a voluntary option, not a mandatory procedure.

c) Conciliation

Conciliation is a type of mediation where the mediator is a public official, such as a Justice of the Peace, Council for the Administration of Justice, or Court Clerk. It is regulated by the Act of Mediation of Civil and Commercial Agreement (articles 139 and following of the Voluntary Proceeding Act) and is similar in process to mediation.

d) Arbitration

When an agreement cannot be reached through negotiation, mediation, or conciliation, arbitration offers a binding solution. Parties can agree on a private individual to act as an arbitrator, similar to a judge, who will provide a binding decision. If the parties cannot agree on an arbitrator, the State Court will intervene (Act 60/2003 of Arbitration). Arbitration proceedings conclude with an award, which is equivalent to a judgment. Specialized, less expensive forms of arbitration, such as consumer arbitration, also exist.

Benefits of ADR

Reaching an agreement through ADR offers several advantages, including saving time, money, and stress. It also promotes a more amicable resolution, creating a win-win situation where both parties feel the outcome is fair. If ADR fails, the next step is to prepare a formal complaint.