What is the most common reason for choosing ADR over traditional litigation?

Choosing alternative dispute resolution (ADR) methods, such as mediation or arbitration, often centers around the desire to preserve relationships among the parties involved. Traditional litigation can create an adversarial environment, which may lead to increased hostility and conflict, damaging any existing relationships—be it personal or professional.

In contrast, ADR is typically characterized by its collaborative nature, allowing parties to communicate openly and work toward a mutually agreeable solution. This approach can help maintain good will and facilitate a more amicable relationship going forward, which is particularly important in ongoing business contexts or in family matters.

The other options highlight downsides of traditional litigation rather than advantages of ADR. While higher legal fees and time-consuming processes are valid concerns regarding litigation, they do not capture the relational aspect that is often a primary consideration. Similarly, increased formality in proceedings is more aligned with the rigid structure of litigation than with the flexible, informal nature of ADR. Understanding the emphasis on relationship preservation sheds light on why many parties opt for ADR as a preferred method of resolving disputes.