In: Finance
Alternative Dispute Resolution (ADR) is the procedure for settling disputes without litigation, such as arbitration, mediation, or negotiation. ADR procedures are usually less costly and more expeditious. They are increasingly being utilized in disputes that would otherwise result in litigation, including high-profile labor disputes, divorce actions, and personal injury claims.
One of the primary reasons parties may prefer ADR proceedings is that, unlike adversarial litigation, ADR procedures are often collaborative and allow the parties to understand each other's positions. ADR also allows the parties to come up with more creative solutions that a court may not be legally allowed to impose.
The collateral source rule prevents the reduction of damages awarded to a plaintiff for injury, illness or disability covered by a third party. The rule mandates that damages awarded to a plaintiff in court cannot be reduced by any amount paid by other sources to cover the damages suffered by the victim, including from health insurance and workers compensation.