Alternative Dispute Resolution

A better process for resolving contract disputes.

In Neutral-Directed ADR™, if a mediation fails to resolve the case, the arbitrator gathers the evidence without adversarial discovery and decides the case without a trial, resulting in a final decision at a fraction of the cost of conventional approaches.

Read the Rules of Procedure How it works

Problems with the alternatives

Every conventional process is deeply flawed.

Mediation

The mediator knows only what the parties choose to disclose. Bluffing and posturing dominate. The mediator is rarely in a position to weigh in on the merits. And if it fails, the cost is entirely sunk, leaving the parties back a square one.

Litigation

Adversarial discovery is indiscriminate and wasteful. Judges cannot decide disputes of fact and tend to punt to juries even when judicial resolution is appropriate. Trials are expensive and unpredictable. Massive procedural costs drive settlement rather than the merits. Appeals extend uncertainty further.

Arbitration

"Litigation-lite" — similar process, often similar cost, just without a jury and usually without a right to appeal. And now you pay the arbitrator on top of your own attorneys, consuming much of any potential savings.

The Neutral-Directed ADR™ process

Three comparatively painless and inexpensive steps to a final decision.

1

Pre-mediation

A neutral is selected. Parties submit mediation statements and all critical documentary evidence, and it is determined whether the same neutral will serve as both mediator and arbitrator. The neutral studies the facts and the law after discussing the dispute with the parties until fully prepared to lead mediation.

2

Mediation

Mediation occurs when the neutral is ready to lead it. With a command of the facts and law, and poised to either decide the case or automatically launch arbitration with a second neutral if the parties do not reach a voluntary resolution, the mediator is equipped to conduct a highly effective mediation.

3

Neutral-directed resolution

If mediation fails, arbitration immediately commences, in which the neutral interprets the contract and directs discovery — interviewing witnesses, requesting documents, and issuing findings of fact and conclusions of law as soon as justified by the evidence. Partisan attorneys play a comparatively minor role.

Adoption

It takes one paragraph.

Neutral-Directed ADR™ is invoked by contract. Following is proposed language that can be copied and pasted and adjusted as appropriate. Note that there are modifications that can be agreed to that further streamline the process. See the Rules of Procedure for details.

The parties stipulate that in the event of any dispute arising from or related to this contract, the sole procedure for dispute resolution shall be the then-current Neutral-Directed ADR Rules of Procedure as set forth at NDADR.com (the “Rules of Procedure”). Accordingly, the parties knowingly and voluntary waive any right to a jury trial or other legal process, consent to virtual proceedings, and may be contacted for purposes of initiating this dispute resolution process at the email addresses set forth below or through any other means set forth in this agreement. Except as otherwise provided herein, emails sent to these email addresses are presumed to constitute service of process and/or fair notice of any information contained in the email as of the first business day after sending. The law of the state of ________ shall apply to any dispute under this provision. Upon invocation of this process, all applicable statutes of limitations shall be tolled. Neutral-Directed ADR is a novel concept intended to dramatically increase procedural efficiency compared to conventional approaches to dispute resolution by, among other innovations, having the neutral decide the case without a trial after taking evidence without conventional adversarial discovery. The parties voluntarily accept the inherent risks involved in applying such a process, including without limitation the risk that the Neutral may make a decision that is actually incorrect or unfair or is perceived by one or more parties to be so. To achieve this procedural efficiency, the parties agree to submit even to such outcomes to the extent required by the Rules of Procedure, to otherwise comply with those Rules, and to hold harmless Neutral-Directed ADR LLC, its members, Staff, and agents, and the Neutral for all good faith actions taken related to any dispute under this provision.

[Email addresses for each party]

Well-suited for

Most disputes between parties to a contract in the low-to-mid seven figures and below — including construction, employment, franchise, licensing and IP, real estate, insurance claims, and supply or distribution agreements.

See the full FAQ

Serve as a neutral

Experienced attorneys, former judges, and experienced mediators/arbitrators who complete a certification process and agree to abide by the rules may apply to be listed in the Directory of Neutrals.

View the directory