What is alternative dispute resolution?

Alternative dispute resolution (ADR) refers to a process that resolves a dispute in a manner other than through a formal trial in a courtroom. The most common forms of ADR are mediation and arbitration.  In mediation, the parties are encouraged to reach a joint resolution; the mediator does not decide the case but instead guides the parties through their issues.  In arbitration, the parties agree to be bound by the arbitrator's decision; the arbitrator is neutral and determines how to resolve the issue after hearing from both sides.