FAQs
What is ADR?
ADR (“alternative dispute resolution”) is a procedure agreed to by the parties of a dispute in which they use the services of a neutral person, commonly an attorney, to assist them in avoiding litigation and in reaching an agreement to resolve their differences. Types of ADR include arbitration, mediation, mini-trials, and neutral fact finding. The goal of ADR is to provide a forum for the parties to work toward a voluntary, consensual agreement, as opposed to the uncertainty, delay and expense of having a judge or jury decide the case. +
What is Arbitration?
Arbitration is an alternative dispute resolution method where the parties agree to have their case heard by an independent arbitrator outside of court. Arbitration is often more cost-effective than litigation due to its less stringent procedural requirements. Of the potential alternative dispute resolution methods available, arbitration is the most similar to taking your case to court, but an arbitration hearing is typically conducted either in a lawyer’s office or remotely, rather than at a courthouse. Commonly, each side pays half of the arbitrator’s fee. +
What is binding arbitration?
The outcome of binding arbitration is a final decision that, because of a contract or another agreement between the parties, is the equivalent of a judgment by a court or jury. Court-Annexed Arbitration in Rhode Island and Statutory Arbitration Pursuant to R.I.G.L. Section 27-10.3-1 can both result in binding awards if one party does not reject the arbitrator’s decision, which rejection can be done for various reasons that the rejecting party is not required to specify. +
What is Mediation?
Mediation is an alternative dispute resolution method with a neutral person (mediator) helping the parties find a mutually agreeable solution to their dispute. The mediator does not usually make a decision on the merits of the case, instead acting merely to facilitate settlement discussions. Mediation is non-binding and a resolution may not be imposed upon the parties. If the parties cannot reach an agreement then the mediation process terminates and the parties may pursue their claims in court or through other forms of dispute resolution. +
What is Court-Annexed Arbitration?
For cases pending in the Superior Courts of Providence, Kent, Washington and Newport counties, that are considered to be worth $100,000 or less, the Rhode Island Superior Court maintains a program where there is a roster of court-appointed attorneys available to hear the cases and issue written decisions. The attorney-arbitrators are paid by the Court. Either side can commence court-annexed arbitration through payment of a $100 fee into the Court system. Then the other side must pay $100 for the arbitration to proceed. Either side can reject the arbitrator’s written decision through a timely $300 payment into the Court system. If neither side rejects the decision, both sides pay another $100 each into the Court and the decision becomes final. +
What is Statutory Arbitration Pursuant to Rhode Island General Laws Section 27-10.3-1?
Every contract of motor vehicle liability insurance issued in the State of Rhode Island, by an insurance carrier authorized to do business in the state, provides that the plaintiff, suffering property damage or bodily injury resulting out of a motor vehicle collision, may at the plaintiff’s election, whenever the claim is for $50,000 or less, submit the matter to arbitration before a qualified arbitrator of the court-annexed arbitration program, whether or not suit has been filed. The cost of the arbitrator is shared between the parties. The decision of the arbitrator shall be binding upon the parties unless, in the event that suit has not been instituted, either party reserves the party’s right to a jury trial by giving notice of this reservation of right to the other party or parties and to the arbitrator within 60 days of the arbitrator’s decision by certified mail return receipt requested; or, in the event that suit has been instituted, either party files a request for a jury trial with the court and with notice to the other party or parties within 60 days of the arbitrator’s award. If suit is instituted in order to bring the action within any applicable statute of limitations, the suit is stayed pending the arbitration process. +
Why is confidentiality important?
Massachusetts mediation confidentiality is governed by M.G.L. c. 233, § 23C, which protects all communications, memoranda, and work-product made by participants or a certified mediator from disclosure in judicial or administrative proceedings. This statute does not apply to labor disputes but otherwise ensures that all discussions made in the course of the mediation in the presence of the mediator are confidential and inadmissible, and that settlement negotiations cannot be used as evidence later on. To ensure maximum protection, parties must typically sign a written agreement to mediate. If mediation does not resolve the matter, the mediator cannot be forced to testify, and confidential discussions cannot be used in court. Additionally, confidentiality language is often required by parties paying a settlement to restrict the settlement recipient from disclosing or publicizing the settlement. In the same way that there is value for the party receiving a settlement to avoid the uncertainty of a resolution through the court system, there can be value for the party paying a settlement to avoid the publicity of a verdict and the effects of a judgment entering on the court record. Like all of the factors in ADR, confidentiality provisions should be discussed and decided by parties with their counsel. +
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