Alternative Dispute Resolution ADR FAQ - Frequently Asked Questions:

I’ve Heard That In ‘Alternative Dispute Resolution’ A Neutral Third Party Is Involved

Yes, that is correct. Technically, the word‘neutral’ is generally used to describe that the ‘third party’ has no vested interest in the outcome of the resolution and is not directly involved in the disagreement. The term ‘neutral’ is sometimes inappropriately used to replicate the ‘judge’ in court room. However, in alternative dispute resolution, the third party has no ‘decision making authority’. The third party assists as the ‘process guide’ steering the parties from disagreement to resolution. The third party is similar to the conductor of an orchestra. The conductor does not play the instruments. The conductor directs. The third party directs, conducts and guides the dispute resolution process using his/her skills as a facilitator, negotiator, counselor, agreement documenter and sometimes adding in a dose of common sense. Only in arbitration and binding mediation is the third party given permission to make a ‘decision’ as a court room judge would do.

Also, it should be mentioned that the ‘third party’ is usually a single individual. It is becoming common practice to have two individuals or a panel of three acting as the ‘third party’. In this way, the ‘process’ is conducted with expanded neutrality. The theory is we are all biased in some way. Individuals have has their own unique viewpoints, past experiences and filters through which they see the world around them. In a pure sense, it would be idealistic to say that ‘anyone’ can be ‘truly neutral’. However, with two individuals or a panel as the ‘third party’ the probability of neutrality in enhanced, plus the parties gain more insight and knowledge from different individuals sharing the roles of facilitator, negotiator, counselor, and agreement documenter.

I’ve Heard That In ‘Alternative Dispute Resolution’ A Neutral Third Party Is Involved


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