A Smarter Way to Resolve Disputes: Exploring Alternative Dispute Resolution (ADR)
Litigation: 11 May 2025
Author: Aaron Stewart - Our People
In the world of business and commerce, disputes are almost inevitable. They may arise from misunderstandings, competing interests, or breaches of contract.
While litigation has long been the traditional way to resolve these issues, it can be costly, time-consuming, and emotionally taxing. In many cases, it may not deliver the outcome that best supports your commercial objectives.
An increasingly popular and practical alternative is Alternative Dispute Resolution (ADR), a suite of processes that allows parties to resolve disputes without the need to go to court.
What Is Alternative Dispute Resolution?
ADR refers to methods of resolving disputes that take place outside of the courtroom. These methods are often more flexible and confidential, and they allow for greater control over the outcome.
Common forms of ADR include:
Negotiation
The parties work directly with each other to reach a solution, often with legal advisors supporting them behind the scenes. This is usually the first step in resolving a dispute and can be very effective where relationships are still intact.
Mediation
A neutral mediator helps the parties identify common ground and facilitates a discussion to explore possible solutions. Mediation is non-binding, but if a resolution is reached, it can be formalised into a legally enforceable agreement.
Arbitration
An independent arbitrator (or panel) hears both sides of the dispute and then issues a decision. Unlike mediation, arbitration is binding. It is more formal than other ADR processes but typically faster and more private than court proceedings.
Conciliation
Similar to mediation, conciliation involves a neutral third party who plays a more active role in suggesting potential solutions. It is commonly used in specific sectors such as employment or consumer matters.
Why Choose ADR?
ADR offers several distinct advantages over traditional litigation:
Cost Efficiency
ADR processes are generally more streamlined and involve fewer procedural steps, making them significantly less expensive than litigation.
Time Savings
While litigation can stretch over months or even years, ADR processes can often be concluded in a matter of weeks.
Confidentiality
Unlike court hearings, ADR sessions are private. This protects sensitive commercial information and helps preserve reputations.
Relationship Preservation
ADR fosters a more collaborative environment. By encouraging open communication, it allows parties to preserve, or even strengthen, business relationships.
Tailored Outcomes
ADR gives parties more flexibility to develop creative and commercially sensible solutions that a court may not be empowered to order.
How Aitken Partners Can Support Your ADR Strategy
At Aitken Partners, we take a strategic and commercially focused approach to dispute resolution. Our team includes experienced litigators and accredited mediators who work closely with clients to evaluate the best path forward whether through negotiation, mediation, arbitration, or conciliation.
We start by understanding your business priorities and risk profile. From there, we assist in:
- Selecting the most appropriate ADR method for your situation
- Preparing a tailored negotiation or mediation strategy
- Managing communication and documentation throughout the process
- Representing you in formal ADR settings
- Formalising settlements into binding legal agreements
Our team also advises on dispute resolution clauses at the contract drafting stage, so you are well-positioned to manage future issues efficiently and effectively.
Achieving Commercial Resolutions Outside the Courtroom
Litigation has its place, but it is not always the best or only solution. ADR offers a faster, more flexible, and often more constructive path to resolving business disputes.
If your business is facing a dispute, or you would like to proactively explore how to incorporate ADR into your commercial contracts, the team at Aitken Partners is here to help.
📞 Contact us on (03) 8600 6000 to speak with one of our dispute resolution specialists.