In our last blog, we defined alternative dispute resolution (ADR) and when it should be used. In this blog, we’ll give you a quick rundown of how ADR works in practice, along with some practical tips for creditors.
- Case Evaluation & Selection: The parties (or their attorneys) assess whether the case is ADR-friendly—e.g. clear factual disputes and willingness to compromise.
- Mediator/Arbitrator Appointment: A neutral third party is selected by agreement or court order.
- Exchange of Information: Parties may exchange documents to support their claims or defenses.
- Negotiation or Hearing:
- In mediation, the mediator helps the parties negotiate a settlement.
- In arbitration, the arbitrator acts like a private judge and issues a binding or nonbinding decision.
- Agreement / Award & Enforcement: If the parties agree or the arbitrator issues an award, it becomes enforceable—either by court order or under a contract.
Practical Tips for Creditors
- Include clear ADR clauses in your contracts (these are usually called mediation/arbitration clauses).
- Keep communication and documentation thorough and professional—good records help in ADR.
- Evaluate the cost-benefit: if your claim is small, ADR may resolve it efficiently.
- Engage experienced attorneys familiar with debt and dispute resolution law.
Your Go-To Guys for Michigan Collection Services
If you need some help navigating ADR, or if you’re at the end of your rope and ready to take your debtor to court, the Mullers can help! To talk with a collection services expert in Michigan, call (248) 645-2440 or submit a contact form to get started! We’ll make the process easy for you.
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