What are the advantages of ADR in large bankruptcies?
In most bankruptcies, there are many claims and preferences that the parties have been unable to settle themselves but do not require traditional full-scale litigation to reach resolution. Alternative dispute resolution procedures, such as mediation, can avoid the unnecessary costs of discovery, motion practice and trial preparation. In relative terms, the time and expenses of preparing for and appearing at a mediation pale by comparison to the costs of trial—even a short cause. Also, as I mentioned, the systematic use of ADR in this fashion can significantly shorten the length of the overall bankruptcy proceeding. Are there any limitations on the use or effectiveness of this process? As with any changes to existing practice, some lawyers and clients who have not used mediation or arbitration before are initially resistant to using them in their cases. But as they become more experienced in ADR, most practitioners find these processes to be useful tools in resolving cases fairly and ef
