Effective Approaches to Alternative Dispute Resolution (ADR): Five Key Pointers for Success

23rd July, 2025 by Sam Leaver

Alternative Dispute Resolution (ADR) is an increasingly popular method of resolving commercial disputes without the time and cost of taking litigation to a final hearing. Whether you’re dealing with a technical disagreement, a contractual issue, or a breakdown in communication, choosing the right ADR strategy can save time, reduce costs, and preserve relationships. However, the effectiveness of any ADR depends heavily on preparation and approach.

Here are five pointers to guide parties toward a successful outcome.

1. Choose the Right Method for the Dispute

Not all disputes are the same – and neither are all ADR methods. One of the first and most important decisions is selecting the right forum. Options include:

Mediation involves the parties in dispute agreeing to appoint a third party mediator who is independent and facilitates discussions with a view to exploring a settlement. It will usually take place on one day, with the mediator being a ‘go between’ for the parties, allowing case discussions and offers to be exchanged
Arbitration is a process whereby a neutral third party is appointed (by agreement between the parties) to provide a binding decision to resolve the dispute
Direct negotiations involve the parties simply exchanging correspondence (whether in writing, during a ‘round table meeting’ or telephone calls) to explore settlement offers.

Consider the nature of the dispute, the urgency of resolution, cost implications, and whether the matter is technical, legal, or commercial. A well-chosen ADR method will enhance the likelihood of resolution.

2. Manage Emotions and Create a Comfortable Environment

ADR is as much about people as it is about problems. Commonly, disputes carry emotional undercurrents – frustration, mistrust, or even resentment. Parties and advisors must be aware of this, and recognise the impact these can had an the ADR if not handled appropriately.

Small details matter:

Structure the environment to minimise tension (e.g. separate waiting rooms, clear communication protocols)
Ensure the process is explained so that everyone knows what to expect.
The tone of the day should be calm, respectful, and constructive.

An uncomfortable, stressed or emotional party can derail settlement options if those emotions are not adequately addressed to provide some comfort and sense of control.

3. Get the Timing and Information Right

Engaging in ADR too early might mean parties lack the necessary information to assess risk and settlement options. Too late, and costs or emotional stakes may have escalated to the point where resolution is harder to reach.

Strike a balance:

Ensure enough information has been exchanged to make informed decisions.
Know your bottom lines and the scope of acceptable outcomes.
Don't wait until litigation has entrenched positions and hardened attitudes.

4. Bring the Right People to the Table

An often-overlooked element is ensuring, early on in arragnemtns, that the right people will be in the room. Negotiations can quickly stall if those present lack the authority to settle.

Always ensure:

Decision-makers attend the sessions
Those present are well-informed and empowered to adjust positions as discussions evolve.

An agreed outcome depends on real-time decision-making. Without it, momentum can be lost, and trust eroded which is hard to reconvene at a later date.

5. Record Agreements to Make Binding

Mediation discussions are typically conducted “without prejudice”, meaning that nothing said can be used later in court. While this protects open dialogue, it also means any agreement reached must be properly documented to be binding.

Best practice is:

Record terms clearly and in writing on the day
Get all parties to sign, ensuring clarity and commitment
If detailed input on areas is needed, at least produce a heads of terms or a summary email to confirm key points.

Leaving without formalising agreement opens the door to second thoughts or disputes about what was agreed. A signed resolution brings closure and relief.

Final Thoughts

ADR can be incredibly effective – but success isn’t just about showing up. It’s about planning, matching the method to the dispute, respecting emotions, ensuring readiness, and closing properly.
Handled well, ADR offers the chance to move on with control, and certainty. And in a commercial context, that’s often worth far more than a courtroom win.

The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.

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