Common use of Alternative Dispute Resolution (ADR) Clause in Contracts

Alternative Dispute Resolution (ADR). If resolution is not achieved through Step 1 (Informal Resolution), the aggrieved party may then seek resolution through Alternative Dispute Resolution, which requires facilitated mediation and negotiation. ADR mediation proceedings must be aided by a neutral party who, with respect to an issue in controversy, functions specifically to aid the parties in resolving the matter through a mutually achieved and acceptable written agreement. The neutral party may not compel a resolution, and the proceedings are informal where the rules of evidence do not apply. At the initial session of dispute resolution proceedings, the aggrieved party must be advised in writing of the right to file a grievance and the right to arbitration. If the matter is resolved, the terms of the resolution are recorded in a written agreement, and the party agrees to forego filing any further grievance on the matter under consideration. With the exception of a written agreement, the proceedings are confidential. o Timeline: ADR must be initiated within 45 days of the alleged occurrence. If matter is not resolved within 30 calendar days from the date the informal dispute resolution process began, the aggrieved party must be informed in writing of the right to file a formal grievance.

Alternative Dispute Resolution (ADR). If resolution is not achieved through Step 1 (Informal Resolution), the aggrieved party may then seek resolution through Alternative Dispute Resolution, which requires facilitated mediation and negotiation. ADR mediation proceedings must be aided by a neutral party who, with respect to an issue in controversy, functions specifically to aid the parties in resolving the matter through a mutually achieved and acceptable written agreement. The neutral party may not compel a resolution, and the proceedings are informal where the rules of evidence do not apply. At the initial session of dispute resolution proceedings, the aggrieved party must be advised in writing of the right to file a grievance and the right to arbitration. If the matter is resolved, the terms of the resolution are recorded in a written agreement, and the party agrees to forego filing any further grievance on the matter under consideration. With the exception of a written agreement, the proceedings are confidential. o Timeline: ADR must be initiated within 45 days of the alleged occurrence. If matter is not resolved within 30 calendar days from the date the informal dispute resolution process began, the aggrieved party must be informed in writing of the right to file a formal grievance.