ADR means Alternative Dispute Resolution

Arbitration Process
You may have encountered an arbitration clause in a contract and wondered what it is and whether you should be happy or upset about this clause. Or a colleague may have suggested to you that you include an arbitration clause in a contract, and you are wondering why this would benefit you. Arbitration as a process is very different from the process of litigation (trying cases in court), for business disputes. Here is a listing of the differences
Public/Private, Formality
The arbitration process is private, between the two parties and informal, while litigation is a formal process conducted in a public courtroon.
Speed of Process
The arbitration process is fairly quick. Once an arbitrator is selected, the case can be heard immediately. In a civil litigation, on the other hand, a case must wait until the court has time to hear it; this can mean many months, even years, before the case is heard.
Cost of the Process
The costs for the arbitration process are limited to the fee of the arbitrator(depending on the size of the claim, expertise of the arbitrator, and expenses), and attorney fees. Costs for litigation include attorney fees and court costs, which can be very high.
Selection of Arbitrator/Judge
The parties in the arbitration process decide jointly on the arbitrator; in a litigation, the judge is appointed and the parties have little or no say in the selection. The parties may have some say in whether a case is heard by a judge or a jury.
Use of Attorneys
Attorneys may represent the parties in an arbitration, but their role is limited; in civil litigation, attorneys spend much time gathering evidence, making motions, and presenting their cases; attorney costs in a litigation can be very high.
Evidence Allowed
The arbitration process has a limited evidence process, and the arbitrator