What are the Three Basic Types of Dispute Resolution? What to Know About Mediation, Arbitration, and Litigation (2024)

How to choose the best dispute resolution process

By PON Staff — on / Dispute Resolution

What are the Three Basic Types of Dispute Resolution? What to Know About Mediation, Arbitration, and Litigation (2)

When it comes to dispute resolution, there are so many choices available to us. Understandably, disputants are often confused about which process to apply to their situation. This article offers some guidance, adapted fromFrank E. A. Sander and Lukasz Rozdeiczer’s chapter on the topic in The Handbook of Dispute Resolution(Jossey-Bass, 2005).

Suppose that parties and their lawyers have exhausted their attempts to negotiate a resolution. They’re ready for outside help in ending their dispute, yet they don’t know exactly where to turn.

Here’s a review of the three basic types of dispute resolutionto consider:

1. Mediation

The goal of mediation is for a neutral third party to help disputants come to a consensus on their own.

  • Rather than imposing a solution, a professional mediator works with the conflicting sides to explore the interests underlying their positions.

Mediation can be effective at allowing parties to vent their feelings and fully explore their grievances.

Working with parties together and sometimes separately, mediators can try to help them hammer out a resolution that is sustainable, voluntary, and nonbinding.

2. Arbitration

In arbitration, a neutral third party serves as a judge who is responsible for resolving the dispute.

  • The arbitrator listens as each side argues its case and presents relevant evidence, then renders a binding decision.

The disputants can negotiate virtually any aspect of the arbitration process, including whether lawyers will be present at the time and which standards of evidence will be used.

Arbitrators hand down decisions that are usually confidential and that cannot be appealed.

Like mediation, arbitration tends to be much less expensive than litigation.

3. Litigation

The most familiar type of dispute resolution, civil litigation typically involves a defendant facing off against a plaintiff before either a judge or a judge and jury.

  • The judge or the jury is responsible for weighing the evidence and making a ruling. The information conveyed in hearings and trials usually enters, and stays on the public record.

Lawyers typically dominate litigation, which often ends in a settlement agreement during the pretrial period of discovery and preparation.

For more information on how to handle a dispute resolution, read these related articles:
Three Questions to Ask About the Dispute Resolution Process– Three essential questions you need to ask about the dispute resolution process.
Make the Most of Mediation in Negotiations and Dispute Resolution– Make sure your next mediation session succeeds with these negotiation skills tips.
10 Great Examples of Negotiation in Business– These examples of negotiation in business share ten great lessons.
Lessons for Business Negotiators: Negotiation Techniques from International Diplomacy– Combine the arts of diplomacy and savvy business negotiation in your next session at the bargaining table after reading this article.
Capture the Best of Mediation and Arbitration– Combine mediation skills and arbitration skills in your next session at the bargaining table and improve your results.

What do you think of these Dispute Resolution methods? Have you used any of them before? Let us know in the comment section below.

Originally published in 2014.

What are the Three Basic Types of Dispute Resolution? What to Know About Mediation, Arbitration, and Litigation (4)

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Discover how to improve your dispute resolution skills in this free report, Dispute Resolution: Working Together Toward Conflict Resolution on the Job and at Home, from Harvard Law School.

Adapted from “Trying to resolve a dispute? Choose the right process,” in the August 2009 issue of Negotiation.

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What are the Three Basic Types of Dispute Resolution? What to Know About Mediation, Arbitration, and Litigation (2024)

FAQs

What are the three basic types of dispute resolution? ›

There are many types of dispute resolution processes, but arbitration; mediation; and negotiation are the three most common types of alternative dispute resolution. Negotiation is the least formal type of ADR.

What are three dispute resolutions? ›

There are three commonly used methods of resolving disputes without going to court: negotiation. mediation. arbitration.

What are the three bases for resolving disputes? ›

Interests, rights, and power then are three basic elements of any dispute. In resolving a dispute, the parties may choose to focus their attention on one or more of these basic factors. They may seek to (1) reconcile their underlying interests, (2) determine who is right, and/or (3) determine who is more powerful.

What are the 3 most common means of resolving a case through alternative dispute resolution describe each one? ›

Common ADR processes include mediation, arbitration, and neutral evaluation. These processes are generally confidential, less formal, and less stressful than traditional court proceedings. ADR often saves money and speeds settlement. In mediation, parties play an important role in resolving their own disputes.

What are three 3 types of resolution to the conflict? ›

The three common approaches to conflict resolution are: third-party intervention, unilateral decision-making, and joint decision-making. Third-party intervention involves bringing forth an unaffected party to assist in the conflict resolution process.

What are three 3 different ways to resolve a contract dispute? ›

Here's a review of the three basic types of dispute resolution to consider:
  • Mediation. The goal of mediation is for a neutral third party to help disputants come to a consensus on their own. ...
  • Arbitration. In arbitration, a neutral third party serves as a judge who is responsible for resolving the dispute. ...
  • Litigation.
Apr 25, 2024

What are the 3 R's of conflict resolution? ›

The more comfortable you are with dealing with it, the more effectively you can resolve it. Conflict resolution requires you to know the three R's – recognize conflict, respond to conflict, and resolve the conflict. Today's post is by Jon Wortmann, thoughtLEADERS principal and author of Hijacked by Your Brain.

What are the three pillars of dispute resolution? ›

The Three Pillars of Dispute Resolution

These are: 1 Negotiation; 2 Mediation (or third party intervention); and 3 Adjudication/ Arbitration/ Litigation.

What are the three conflict resolution strategies? ›

Kenneth Thomas and Ralph Kilmann developed five conflict resolution strategies that people use to handle conflict, including avoiding, defeating, compromising, accommodating, and collaborating.

What are the three major approaches to conflict resolution? ›

Approaches to conflict management and resolution, as applied to these disputes, include bilateral and multilateral negotiation, mediation and arbitration.

What are 3 tips for resolving conflict? ›

Some Ways to Resolve Conflicts
  • Talk directly. Assuming that there is no threat of physical violence, talk directly to the person with whom you have the problem. ...
  • Choose a good time. ...
  • Plan ahead. ...
  • Don't blame or name-call. ...
  • Give information. ...
  • Listen. ...
  • Show that you are listening. ...
  • Talk it all through.

What are 3 ways to settle a dispute? ›

Negotiation, mediation and arbitration, often called ADR or alternative dispute resolution, are the most well known.

Which are the three standard types of dispute resolution? ›

This article will discuss four standard dispute resolution methods: arbitration, mediation, conciliation, and negotiation. Each has its advantages and disadvantages, but they all serve to resolve disputes in a manner that is more flexible than the court system.

What are the three components of the process of resolving a dispute? ›

Resolving a dispute or disagreement is a multifaceted process involving three key components: communication, negotiation, and, when necessary, formal resolution mechanisms.

What is the difference between arbitration and mediation? ›

What's the difference between mediation and arbitration? In a mediation process, a neutral, trained mediator works to help disputants come to a consensus on their own. In arbitration, a neutral, trained arbitrator serves as a judge who is responsible for resolving the dispute.

What is the most common dispute resolution? ›

Negotiation is the most common approach to resolving disputes, and it is less formal than arbitration or mediation and affords parties more flexibility. Effective negotiation can be an alternative to litigation, especially when parties are willing to work together in good faith.

What are the three ways to resolve conflict? ›

Negotiation, mediation and arbitration, often called ADR or alternative dispute resolution, are the most well known.

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