Settling out of court, also known as alternative dispute resolution (ADR), is a process that allows parties to resolve their disputes without going to trial. ADR methods include mediation, arbitration and negotiation. This guide will discuss the pros and cons of settling out of court and the factors to consider when deciding whether or not to pursue ADR. Check this link to hire an assault lawyer Toronto.
Pros of settling out of court:
ADR is generally less expensive than going to trial, as it eliminates the need for costly court fees, legal fees, and expert witness fees.
ADR can be completed much faster than going through the court system. This is because ADR proceedings are less formal and time-consuming than trial proceedings.
Parties have more control over the outcome of the dispute when settling out of court. In ADR, the parties can negotiate a settlement tailored to their specific needs and interests, whereas, in the trial, the outcome is decided by a judge or jury.
ADR proceedings are typically confidential, meaning the dispute details are not publicized. This can be beneficial for parties who want to keep the argument private.
Cons of settling out of court:
Settling out of court can be less specific than going to trial, as the outcome is determined by the parties rather than a judge or jury.
ADR may not provide the same remedies as a court judgment. For example, a court judgment can include various legal remedies, such as monetary damages, injunctions, or specific performance.
Lack of formal rules:
ADR proceedings are less formal than trial proceedings, making it challenging to ensure that all parties have a fair and equal opportunity to present their case.
The decisions made in ADR proceedings are typically final and binding, with limited opportunities for appeal. This means that the parties must accept the conclusion of the mediator or arbitrator, regardless of whether they agree with it.
When to consider settling out of court:
When the parties want to maintain a good relationship:
ADR can be a good option for parties who wish to maintain a good relationship, as it allows them to negotiate a mutually beneficial settlement.
When the parties want to keep the dispute private:
ADR proceedings are typically confidential, which can benefit parties who wish to keep the argument private.