Alternative Dispute Resolution (ADR)/Arbitration

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Alternative Dispute Resolution (ADR) refers to methods and processes of resolving claims without litigation, such as arbitration, mediation, and small claims procedures. ADR can be formal or informal and provides a method to avoid the expense and inefficiency of litigation. Read More...

ADR is widely used in the U.S., where empirical studies demonstrate that it is cheaper, faster, and often offers more compensation for the consumer. There are also well-established ADR procedures in many of the EU member states and in other countries around the world.

Arbitration

Arbitration is an effective dispute resolution process where an independent third party reviews the facts of a case and applies the appropriate resolution, resulting in the avoidance of costly and time-consuming courtroom litigation. However, arbitration is now under attack by plaintiffs’ lawyers, who see it as a barrier to the expansion of profitable class action lawsuits. Class action lawsuits often lead to plaintiff lawyers pocketing millions of dollars in fees, while those they represent receive little or nothing of significant value from the settlement.

For many, arbitration is the better way to go as it produces resolutions much faster than class actions and other types of court-based litigation, which often last years. Arbitration also results in more money for employees and leads to decreased costs of legal fees for both sides. Eliminating arbitration will not only lead to litigation costs steadily increasing, but the courts demanding assignments will increase, leaving millions of Americans with very limited opportunities for restitution.

Legislative measures to limit the use of arbitration have largely been unsuccessful. Multiple bills and amendments that would have banned arbitration have been proposed and blocked since the early-2000s. Due to the clear advantages of arbitration over litigation in any number of situations, research shows that most Americans prefer arbitration as it puts money into the hands of individuals seeking just compensation, instead of feeding our nation’s excessive litigation monster.

Suggested Resources

Research
  • Fairer, Faster, Better: An Empirical Assessment of Employment Arbitration

    Fairer, Faster, Better: An Empirical Assessment of Employment Arbitration

    May 15, 2019

    Plaintiffs do better in employment arbitration than in litigation. That's the key finding from research performed by ndp|analytics, which among other things shows that during the study period of 2014-2018, employee-plaintiffs were three times as likely to win arbitration cases that terminated in awards than they were to win comparable cases in litigation. The average dollar award for employee-plaintiffs was over 90 percent higher in arbitration cases than in litigation, and the average arbitration case was also much faster to resolve. Read More

  • Arbitration Survey | March 7-11, 2019

    Arbitration Survey | March 7-11, 2019

    May 11, 2019

    Read More

Additional Resources

All Results for Alternative Dispute Resolution (ADR)/Arbitration

  1. In the News Today - May 17, 2019

    May 17, 2019 | News

    ILR President Says "Only Winners Will Be Trial Lawyers" If Congress Takes Away Arbitration... Read More

  2. New Research Finds Employees Win More Money and More Often in Arbitration Than Litigation

    May 16, 2019 | News

    A new report from NDP Analytics found that employees who settled an employment suit in arbitration were "three times more likely to win in arbitration than in court."... Read More

  3. New Study: Workers Win More Money and More Often in Arbitration Than in Court

    May 16, 2019 | Press Release

    New Poll Also Shows More Than Six in Ten View Arbitration Favorably as a Way to Solve Disputes ... Read More

  4. Fairer, Faster, Better: An Empirical Assessment of Employment Arbitration

    May 15, 2019 | Research

    Plaintiffs do better in employment arbitration than in litigation. That's the key finding from research performed by ndp|analytics, which among other things shows that during the study period of 2014-2018, employee-plaintiffs were three times as likely to win arbitration cases that terminated in awards than they were to win comparable cases in litigation. The average dollar award for employee-plaintiffs was over 90 percent higher in arbitration cases than in litigation, and the average arbitration case was also much faster to resolve.... Read More

  5. Arbitration Survey | March 7-11, 2019

    May 11, 2019 | Research

    ... Read More

  6. In the News Today - April 25, 2019

    April 25, 2019 | News

    "Another Ninth Circuit Spanking;" Monsanto Says Judge in RoundUp Case May Have Been Influenced By PR Campaign... Read More

  7. SCOTUS Says Class Arbitration May Only Be Invoked If Specifically Authorized

    April 24, 2019 | News

    The U.S. Supreme Court ruled 5-4 that the class arbitration process can only be invoked if the arbitration agreement specifically authorized it, Law360 reports.... Read More

  8. Forced Litigation Benefits Only Lawyers, ILR President Rickard Says

    March 01, 2019 | News

    In Corporate Counsel, U.S. Chamber Institute for Legal Reform President Lisa A. Rickard (ILR) said bills that would eliminate arbitration are really a "forced litigation scheme that will cut most people off from justice" and enrich plaintiffs' lawyers.... Read More

  9. Unlikely Allies: Trial Lawyers and Conservative Treasurers

    December 10, 2018 | News

    A Legal Newsline report in Forbes details the unusual alliance between class action trial lawyers and free market state treasurers.... Read More

  10. In the News Today - October 18, 2018

    October 18, 2018 | News

    Attorney Asks: "Can Class Arbitration Even Work?"... Read More