Alternative Dispute Resolution (ADR) Legal Meaning and Definition

Here is a simplified definition of the legal term Alternative Dispute Resolution (ADR).

Alternative Dispute Resolution (ADR) (noun):

Alternative Dispute Resolution, or ADR, is a set of methods and techniques used to resolve conflicts and disagreements outside of traditional court proceedings. Common methods include arbitration, where a neutral third party makes a binding decision, and mediation, where a neutral third party helps the disputing parties negotiate a settlement. ADR can be quicker, less formal, and more cost-effective than court trials, but it may involve compromises that not every party might be agreeable to.