Alternative Dispute Resolution

Alternative Dispute Resolution (ADR) is a dynamic and flexible process that offers an alternative to traditional litigation. It encompasses various methods, such as mediation and arbitration, which focus on finding common ground, preserving relationships, and reaching fair resolutions outside of the courtroom. Common ADR processes include mediation, arbitration, conciliation and neutral evaluation. These processes are generally confidential, less formal, and less stressful than traditional court proceedings.

ADR often saves money and speeds settlement. In mediation, parties play an important role in resolving their own disputes. This often results in creative solutions, longer-lasting outcomes, greater satisfaction, and improved relationships. With Arbitration, a neutral person called an "arbitrator" hears arguments and evidence from each side and then decides the outcome. Arbitration is less formal than a trial and the rules of evidence are often relaxed. In binding arbitration, parties agree to accept the arbitrator’s decision as final, and there is generally no right to appeal. In nonbinding arbitration, the parties may request a trial if they do not accept the arbitrator’s decision. While with mediation, a neutral person called a "mediator" helps the parties try to reach a mutually acceptable resolution of the dispute.  The mediator does not decide the case, but helps the parties communicate so they can try to settle the dispute themselves. Mediation may be particularly useful when family members, neighbors, or business partners have a dispute.  Mediation may be inappropriate if a party has a significant advantage in power or control over the other. Learn more about Mediation.

In other mediums such as early neutral evaluation a neutral person with subject-matter expertise hears abbreviated arguments, reviews the strengths and weaknesses of each side’s case, and offers an evaluation of likely court outcomes in an effort to promote settlement. The neutral evaluator may also provide case planning guidance and settlement assistance with the parties' consent.

Conciliation as an alternative dispute method involves a neutral third party who can give an opinion or suggestion. It is a system of ADR where a third party known as the conciliator uses his best endeavours to bring the disputing parties to a voluntary settlement of their dispute. Conciliation is regulated by the Arbitration and Conciliation Act (ACA) Laws of the Federation of Nigeria (LFN) 2004. 

Beyond the basic types of alternative dispute resolutions there are other different forms of ADR:

• Family group conference: a meeting between members of a family and members of their extended related group. At this meeting (or often a series of meetings) the family becomes involved in learning skills for interaction and in making a plan to stop the abuse or other ill-treatment between its members.

• Expert determination: a procedure where a dispute or a difference between the parties is submitted, by mutual agreement of the parties, to one or more experts who make a determination on the matter referred to them. The determination is binding, unless the parties agree otherwise and is a confidential procedure.

• Ombuds: third party selected by an institution – for example a university, hospital, corporation or government agency – to deal with complaints by employees, clients or constituents.

In Nigeria, the ADR process is becoming an acceptable and best method of resulting in commercial disputes. Howbeit, the ADR process, especially the arbitration is not without its disadvantages. One of the major disadvantages of such process is the situation by which a losing party in the arbitration will institute a court action or file an application in court seeking to set aside the arbitral award on grounds of misconduct of arbitrator or an award has been improperly procured or an award contains decisions on matters not submitted to the arbitrator. However, such application must be filed in court within 3 months after the arbitral award has been delivered. It is essential that you consult with a lawyer who has experience with ADR processes before you sign such contracts or agree to use such means of dispute resolution.