{"id":368966,"date":"2016-04-04T10:47:05","date_gmt":"2016-04-04T15:47:05","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/litigation\/filing-a-lawsuit\/resolution-before-trial-settlement-alternative-dispute.html"},"modified":"2026-05-20T12:58:27","modified_gmt":"2026-05-20T17:58:27","slug":"resolution-before-trial-settlement-alternative-dispute","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/litigation\/filing-a-lawsuit\/resolution-before-trial-settlement-alternative-dispute.html","title":{"rendered":"Alternative Dispute Resolution (ADR) Settlements"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Alternative Dispute Resolution (ADR) Settlements<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/samuel-strom-j-d\/\">Samuel Strom, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/melissa-bender-esq\/\">Melissa Bender, Esq.<\/a>\n                | Last updated\n        <time>\n                            May 20, 2026\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>Some arguments are too complex or contentious to work out through a simple conversation. But filing a lawsuit might not be the best solution for all cases. Instead, you can consider settling the issue through an alternative dispute resolution (ADR) method. ADR includes a range of options, including mediation, arbitration, and settlement negotiations.<\/p>\n\n    <\/div>\n\n\n\n<div><div>\n<p>Most parties to a civil case settle their dispute before it reaches a trial. Some parties negotiate a settlement on their own. Sometimes,\u00a0negotiation will not lead to a\u00a0satisfactory settlement. In that case, the parties may need the assistance of legal professionals and neutral third parties.<\/p>\n<p>If the parties to a civil case cannot reach a settlement agreement on their own,\u00a0they can engage in one of\u00a0several different methods of\u00a0<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/alternative-dispute-resolution.html#\">alternative dispute resolution<\/a>\u00a0(ADR). The most common methods of ADR include arbitration and mediation.<\/p>\n<p>This article provides information about several ADR methods and why parties might choose one versus the others in a civil case. It also provides information about whether the settlement negotiations bind the parties if they do not settle. But when you&#8217;re considering how to best handle a growing dispute, get insight from a <a href=\"https:\/\/lawyers.findlaw.com\/litigation-appeals\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">litigation and ADR lawyer<\/a> before making a decision.<\/p>\n<h2>Benefits of Settlements and ADR<\/h2>\n<p>There are several benefits to <a href=\"https:\/\/www.findlaw.com\/adr.html\">resolving a case through ADR<\/a>, including the following:<\/p>\n<ul>\n<li>It provides an amicable resolution to the dispute that the parties agree with, and the parties do not have to spend more money on attorney fees and court costs.<\/li>\n<li>Most forms of ADR are collaborative rather than confrontational, like a trial.<\/li>\n<li>It may preserve or improve the parties&#8217; relationship, which can be helpful if they intend to continue working together.<\/li>\n<li>It offers finality and can save parties from undergoing further stress that a full-blown court proceeding may bring.<\/li>\n<\/ul>\n<h2>Types of Alternative Dispute Resolution<\/h2>\n<p>Common ADR methods in a civil case include the following:<\/p>\n<ul>\n<li><a href=\"#Mediation\">Mediation<\/a><\/li>\n<li><a href=\"#Arbitration\">Arbitration<\/a><\/li>\n<li><a href=\"#Settlement\">Settlement conferences<\/a><\/li>\n<li><a href=\"#evaluations\">Neutral evaluations and factfinding<\/a><\/li>\n<li><a href=\"#Minitrials\">Minitrials<\/a><\/li>\n<li><a href=\"#summary-trial\">Summary jury trials<\/a><\/li>\n<\/ul>\n<p>The dispute resolution process differs between these methods. Yet, all these forms of ADR provide an <a href=\"https:\/\/www.findlaw.com\/adr\/mediation\/mediation-vs-arbitration-vs-litigation-whats-the-difference.html\">alternative to litigating<\/a> a dispute. Assuming parties enter the ADR process in good faith, it can provide informal and effective dispute resolution methods.<\/p>\n<h3><a id=\"Mediation\"><\/a>Mediation<\/h3>\n<p>Mediation, perhaps the most common type of ADR, involves using a neutral third party called\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/mediator.html\" target=\"_blank\" rel=\"noopener\">a mediator<\/a>\u00a0who tries to help the parties reach an amicable resolution to their dispute. Mediators are often practicing or retired attorneys who understand the dispute&#8217;s subject matter and applicable laws.<\/p>\n<p>The <a href=\"https:\/\/www.findlaw.com\/adr\/mediation\/lawsuit-mediation-trying-to-compromise-before-starting-a-lawsuit.html\">mediation process<\/a> is\u00a0informal and inexpensive compared to the costs of litigation. When the parties agree to mediate their case, they each\u00a0provide their version of the facts to the mediator. They will also highlight the strengths and weaknesses of their case and the amount of money or type of relief they believe the opposing party owes them.<\/p>\n<p>On the day of mediation, the parties often agree to meet somewhere and sit in separate rooms. Other mediations occur over the phone between parties&#8217; attorneys.\u00a0<\/p>\n<p>Mediation\u00a0is a series of conversations between the mediator and the parties. The mediator moves between rooms and discusses the case with each side alone. They ask the parties questions to better understand the legal dispute, and they bring settlement offers from one party to another.<\/p>\n<p>The mediator may spend multiple hours trying to help the disputing parties resolve their dispute. During mediation, they will attempt to ensure the parties understand the other side&#8217;s interests and arguments. They will also try to help a party\u00a0<a href=\"https:\/\/www.findlaw.com\/adr\/mediation\/common-mediation-questions.html\">understand their risks<\/a> should they not reach a settlement agreement during mediation.<\/p>\n<p><a href=\"https:\/\/www.findlaw.com\/adr\/mediation\/the-advantages-of-mediation-cases-over-traditional-lawsuits.html\">Mediation negotiations<\/a> do not bind the parties. Parties can end the mediation and continue litigating the case as though it never occurred.<\/p>\n<p>Your state may offer a directory of mediators and community mediation resources. If you hire an attorney for your case, they may know mediators for your specific type of dispute.<\/p>\n<p>FindLaw&#8217;s article\u00a0<a href=\"https:\/\/www.findlaw.com\/adr\/mediation\/what-is-mediation-.html\">What is Mediation?<\/a> offers a closer look at this option.<\/p>\n<h3><a id=\"Arbitration\"><\/a>Arbitration<\/h3>\n<p>Compared to filing a lawsuit, arbitration is a more streamlined option to resolve a legal dispute. A\u00a0neutral decision-maker called\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/arbitrator.html\" target=\"_blank\" rel=\"noopener\">an arbitrator<\/a>\u00a0hears arguments and evidence from both parties, similar to the litigation process. Unlike the court system,\u00a0arbitration may involve <a href=\"https:\/\/www.findlaw.com\/adr\/arbitration\/arbitration-pros-and-cons.html\">less formal rules<\/a> of evidence and procedure.<\/p>\n<p>Depending on the parties&#8217; <a href=\"https:\/\/www.findlaw.com\/adr\/arbitration\/arbitration-rules-and-procedures.html\">agreement regarding arbitration<\/a>, the arbitrator&#8217;s decision may bind the parties. For example, the parties may have agreed to submit any dispute to <a href=\"https:\/\/www.findlaw.com\/adr\/arbitration\/can-i-sue-if-i-signed-an-arbitration-agreement.html\">binding or non-binding<\/a> arbitration. If they entered into a binding arbitration agreement, the result of arbitration is a binding decision.<\/p>\n<p>Arbitrations take many different forms. Sometimes, a single arbitrator decides the pending issues. Other times, a panel of arbitrators renders a decision. In most cases, the parties can decide <a href=\"https:\/\/www.findlaw.com\/adr\/arbitration\/the-arbitration-process.html\">how the arbitration will proceed<\/a>.<\/p>\n<p>FindLaw&#8217;s article\u00a0<a href=\"https:\/\/www.findlaw.com\/adr\/arbitration\/what-is-arbitration-.html\">What is Arbitration?<\/a>\u00a0offers more information\u00a0about the arbitration process.<\/p>\n<h3><a id=\"Settlement\"><\/a>Settlement Conferences<\/h3>\n<p>Many courts schedule a <a href=\"https:\/\/www.findlaw.com\/litigation\/legal-system\/tips-on-negotiating.html\">settlement conference<\/a> in civil cases. The parties and a trial court judge attend a settlement conference before a trial occurs. The parties\u00a0attempt to resolve their case before going through the time and expense of a trial. The judge may help facilitate the <a href=\"https:\/\/www.findlaw.com\/litigation\/legal-system\/what-does-it-mean-to-settle-a-case.html\">negotiations<\/a>.<\/p>\n<p>While in most instances the\u00a0parties and their attorneys must attend the settlement conference, sometimes\u00a0the court may require\u00a0just a party&#8217;s attorney to\u00a0be present. If the court allows it, the non-attending party must grant their attorney full settlement authority and\u00a0be available during the conference.<\/p>\n<h3><a id=\"evaluations\"><\/a>Neutral Evaluations<\/h3>\n<p>An early\u00a0neutral evaluation\u00a0(ENE) involves a neutral third party called\u00a0an evaluator\u00a0who listens to both sides of the case.\u00a0The parties\u00a0present their arguments, defenses, and evidence to the evaluator, who\u00a0gives\u00a0an opinion on how the parties could resolve the dispute.<\/p>\n<p>The evaluator&#8217;s opinion does not bind the parties. The parties often use it as a starting point in their settlement negotiations.<\/p>\n<p>ENEs are good options when the dispute involves a technical or industry-specific issue that a subject matter expert understands. The evaluator often\u00a0possesses expertise, skills, and extensive knowledge regarding the dispute&#8217;s subject matter. For example, in a case involving an alleged structural defect, the parties may choose an evaluator with a background in engineering and law.<\/p>\n<h3><a id=\"Minitrials\"><\/a>Minitrials<\/h3>\n<p>Despite its name, the\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/minitrial.html\" target=\"_blank\" rel=\"noopener\">minitrial<\/a>\u00a0is not an actual\u00a0trial. Instead, it is more akin to a confrontational settlement conference. No judge or member of the judiciary presides over the minitrial, and any opinion resulting from the minitrial does not bind the parties.<\/p>\n<p>All parties to a case must agree to the minitrial. Each party selects a representative or manager from their side to attend the minitrial. The representative or manager must have the authority to settle the dispute. The parties may also decide to have a neutral third party act as a trier of fact and issue an advisory opinion. They have no power to <a href=\"https:\/\/dictionary.findlaw.com\/definition\/adjudicate.html\" target=\"_blank\" rel=\"noopener\">adjudicate<\/a> the case.<\/p>\n<p>Before the minitrial begins, the parties, their attorneys, representatives, and neutral parties may meet to discuss how the minitrial will proceed. The agreement they reach guides the parties as they prepare for the minitrial.\u00a0<\/p>\n<p>For example, the agreement could specify how much time each party will have to present their case and <a href=\"https:\/\/www.findlaw.com\/litigation\/going-to-court\/filing-a-lawsuit-the-discovery-process.html\">discovery rules<\/a> before the minitrial. This not only provides the minitrial with structure but also allows for flexibility.<\/p>\n<p>At the minitrial, the parties present their cases to the representatives and neutral third party as though it were a real trial. Because the formal rules of procedure and evidence do not govern the trial, it is somewhat\u00a0informal. The minitrial is confidential, and the parties can agree not to use any statements made during it in a later court proceeding.<\/p>\n<p>Once the minitrial concludes, the representatives may discuss the case\u00a0and attempt to resolve it. They may also ask the neutral third party to give their opinion of the case given the facts and applicable law.<\/p>\n<p>Minitrials are optional, voluntary, and non-binding for the parties. They allow parties to understand the opposing side&#8217;s arguments better and provide valuable information before settlement negotiations.<\/p>\n<h3><a id=\"summary-trial\"><\/a>Summary Jury Trials<\/h3>\n<p>A summary jury trial is a nonbinding trial before a judge and jury,\u00a0unless the parties agree beforehand\u00a0to a binding summary jury trial. Parties decide to participate in a summary <a href=\"https:\/\/www.findlaw.com\/litigation\/going-to-court\/rules-regarding-your-jury-trial.html\">jury trial<\/a> to see how the jurors will respond to their arguments and defenses.<\/p>\n<p>Because the summary jury trial allows parties to see how a <a href=\"https:\/\/www.findlaw.com\/litigation\/going-to-court\/jury-trials-representing-yourself.html\">jury would decide<\/a> a case, it may foster settlement negotiations. In theory, losing at the summary jury trial level shows a party that taking the case to a full trial may not benefit them.<\/p>\n<p>If one party is adamant about taking the case to trial but loses in the summary jury trial, they may reconsider their stance.\u00a0This might make negotiation possible.<\/p>\n<h2>Questions? Contact an Attorney<\/h2>\n<p>If you file a civil case or receive notice of a lawsuit filed against you, contact a\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/litigation-appeals\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">civil litigation attorney<\/a>. They can help you navigate the procedural rules of litigation and settlement negotiations. They can also <a href=\"https:\/\/www.findlaw.com\/litigation\/legal-help-and-resources\/worksheet-plaintiff-s-settlement.html\">review a proposed settlement<\/a> to help you decide whether it will yield a fair outcome for you. If negotiations between you and the opposing party go nowhere, your attorney can help you decide whether to pursue a form of ADR and which one best suits your case.\u00a0<\/p>\n<\/div><\/div>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n       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