Alternative Dispute Resolution (ADR) and Litigation:
Key Features and Considerations
The following chart describes the key features and considerations for ADR and litigation to help you decide which
avenue is best suited to manage your conflict. It is important to compare and contrast how each option relates to
your current situation to determine which is best suited to meet your objectives and to ensure satisfaction with the
process chosen.
Conflict
Resolution
Option
Key Features
Alternative
Dispute
Resolution
(ADR):

Allows for a custom
made win-win outcome
on all or part of the
issues
Any means used to
resolve a conflict other
than through litigation
(i.e. negotiation,
facilitated discussion,
mediation, etc.)

Focuses on consensus
building and is futureoriented

Aims to determine the
parties’ interests

Involves the
participation of a neutral
and impartial ADR
practitioner (selected or
agreed upon by all
parties) to facilitate
participants’ negotiations
and discussions

Voluntary participation
(except where court
appointed) and can
withdraw from process
at any stage

Usually informal, less
structured and flexible

Emphasizes mutuality
over self-interest and
reconciliation over
termination
Considerations

Parties actively participate in the process, define the issues
and retain control of the outcome; they have the final say not the ADR practitioner

Discussions, negotiations and documentation are
confidential, unless otherwise required by law, and do not
form part of the public record

Allows for direct communication between participants in a
non-confrontational setting to identify the true issues and
cause of the dispute

Each party has the opportunity to describe the situation
from his/her perspective and their needs and interests
without the restrictions of the civil rules

Requires commitment; outcome also requires good-faith
participation by all participants; time and money will be
wasted if the intention to collaborate is not present

ADR process can be scheduled at the convenience of
participants and practitioner

Allows for creative discussion of options and a wider range
of possible outcomes, such as better understanding of
others’ perspective, change in practice or process, etc.

Outcome depends on settlement authority of the
participants

Allows for the preservation of business relationships

Parties reserve the right to litigate, if they are unhappy with
the process or do not reach agreement, they can walk away
or proceed to litigation

If a mutually acceptable resolution is reached, the agreement
can result in a legally binding settlement agreement
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Conflict
Resolution
Option
Litigation:
The act or
process of
bringing about or
contesting a
claim (i.e. the
traditional court
system)
Key Features

May result in an “all-ornothing” decision

Focuses on the facts and
is past–oriented

Aims to determine the
parties’ legal rights

Determines winners and
losers

Usually involves a judge who is appointed by the
court – to determine the
outcome based on the
law and legal precedents

Mandatory participation
once legal action is
initiated

Formalized and highly
structured

Costly and long delays
Considerations

Communication usually occurs through lawyers

Results cannot be predicted – responsibility for decision rests with a
court appointed third party

Decisions rendered can act as precedent in future similar cases

Provides public record of evidence and a decision supported by
reasons that may be subject to appeal

Usually requires more resources (more costly, more witnesses,
experts and preparation time) and a longer wait time for resolution

When quick action is necessary, the courts can provide emergency
rulings, such as injunctions, which are not always possible in ADR
processes

Ensures a decision; even in cases where the dispute involves a nonnegotiable issue

Focuses on determining what is legal and what is not

Provides authority on issues that involve a breach of law or statute
interpretation

Ideal for cases that have implications for a wide range of individuals
outside of the immediate localized dispute or where parties want to
have a third party be responsible for the decision
When reviewing your options, it is important to consider the following:



What degree of control, as a participant, would you like to have?
Who has the decision making authority for this dispute?
What degree of decision making authority would you like the 3rd party
to have?



What are the power dynamics at play within this dispute?
What are the structural features of this dispute (timeconstraints, resource allocation, etc.)?
What is the intended goal in striving to resolve this
dispute?
FOR MORE INFORMATION CONTACT:
Business Dispute Management Program
bdm.gcc@tpsgc-pwgsc.gc.ca
(819) 956-4064
www.tpsgc-pwgsc.gc.ca/gcc-bdm
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