Introduction

Alternative dispute resolution (ADR) including mediation and arbitration is a valuable tool to resolve business and personal disputes without lengthy litigation. At Burns & Black, embrace clients to include ADR clauses in contracts because they provide flexibility, confidentiality, and cost-effective results for our clients.

Why These Clauses Matter

• Mediation encourages open dialogue and often preserves business relationships. It allows both sides to work with a neutral mediator to reach a mutually acceptable resolution.
• Arbitration, on the other hand, acts as a private tribunal for court litigation, where an arbitrator issues a binding decision.

Benefits of ADR

• Speed and efficiency: Disputes can often be resolved in weeks or months rather than years.
• Privacy: Unlike court proceedings, ADR remains confidential.
• Lower costs: Fewer procedural steps mean reduced attorney fees, yet arbitration is expensive.
• Expertise: Arbitrators can be selected for their industry-specific knowledge.

When ADR Might Not Be Ideal

If a party needs urgent court relief (like a temporary restraining order) or anticipates complex discovery, litigation may be the better path.

Our attorneys tailor ADR provisions to fit each client’s business goals, ensuring contracts remain enforceable and protective of our client’s rights.

Disclaimer: 
The foregoing blog is intended to be for general information only and not specific legal advice.  All readers agree that no attorney-client relationship is intended or established by reading the blog. For specific legal advice, all readers must contact their own attorney or the State Bar of Texas Lawyer Referral and Information Service (LRIS).