Besides arbitration, the primary ADR methods in international dispute resolution include mediation, negotiation, conciliation, neutral evaluation, peer review, collaboration, and mini-trial.
Mediation: In mediation, an impartial third party, called a “mediator”, facilitates communications between the disputing parties and assists them to reach a mutually acceptable resolution. It is noteworthy that the mediator does not make decisions but facilitates the negotiation process.
Negotiation: Negotiation involves a direct dialogue or discussion between the parties involved in the dispute. This method is one of the most straightforward forms of ADR and can be conducted with or without the assistance of a mediator or facilitator. The primary objective of this method is to for the disputing parties to communicate to reach a mutually agreeable solution through communication and compromise.
Conciliation: Conciliation is a process similar to mediation but typically used in international disputes. A neutral third party, the conciliator, helps the parties communicate and propose solutions. However, unlike mediators, conciliators may also offer recommendations or settlement proposals.
Neutral Evaluation: In this process or method, an impartial third party, often an expert in the relevant field, evaluates the strengths and weaknesses of each party’s case. This evaluation can assist and guide the disputing parties toward a settlement or use of other means such as litigation.
Peer Review: Common in professional settings, peer review involves a panel of peers or colleagues evaluating a dispute and providing recommendations for resolution. Since the recommendations from peers are typically well-calculated and reasonable, this method of resolving disputes is generally effective and well-received by the parties involved.
Collaboration: The collaborative method involves each party being represented by their own attorney. In this method, the parties and their attorneys are committed to resolving the dispute cooperatively rather than adversarially. In other words, the parties and their lawyers work together to find a solution that benefits all those involved.
Mini-Trial: In a mini-trial, the parties present their case to a panel of decision-makers which typically include senior executives and/or other experts. The panel then provides a non-binding opinion on the merits of the case, assisting the parties in making informed decisions about potential settlement options.
The choice of ADR method depends on a number of parameters and factors, such as:
- The nature of the dispute,
- The willingness of the parties to cooperate,
- The financial resources the parties may have,
- The speed the parties expect for the resolution of their differences, and
- Other specific circumstances of the case.