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ADR Pros & Cons
Factors favoring the use of ADR
- The law of determinative legal issues is well settled.
- The dispute is primarily factual.
- The position of each side has merit, but its value is overstated.
- The cost of litigating the dispute would exceed the potential recovery.
- No further discovery is required--or limited expedited discovery will
suffice--for each side to assess its strengths and weaknesses.
- Avoidance of an adverse precedent is appropriate.
- A speedy resolution is desirable.
- The case lends itself to settlement before a board or court decision.
- A strong presentation will give one side or the other a more realistic attitude about the case.
- Trial preparations could be costly and protracted.
- A neutral third party could help diffuse the emotion or hostility which
may inhibit an appropriate settlement of the dispute.
- The evaluation of a neutral advisor could help break the stalemate.
- There is a continuous relationship among the parties.
- The parties have indicated that they want to settle.
- The case faces a hostile forum or decision maker.
- We want/need to maintain control of the process.
Factors against the use of ADR
- The dispute is primarily over issues of law.
- A decision with precedential value is needed.
- A significant policy question is involved.
- A full public record of the proceeding is important.
- The outcome would significantly affect nonparties.
- The costs of using an ADR procedure would probably be greater (in time
and money) than the costs of pursuing litigation.
- The case involves a willful or criminal violation of law.
- The advantage of delay runs heavily in favor of one side.
- The other side has no motivation to settle.
- More time must elapse before each side’s position and settlement
possibilities can all be evaluated.
- There is a need for continuing board or court supervision of one of the
parties.
- The other side may not be forthright in its ADR presentation.
- Case likely to be resolved efficiently without assistance (e.g. settle,
motion).
- Case involves fraud.
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