The term alternative dispute resolution or adr is often used to describe a wide variety of dispute resolution mechanisms that are short of or alternative to full scale court processes the term can refer to everything from facilitated settlement negotiations in which disputants are encouraged to negotiate directly. What is alternative dispute resolution alternative dispute resolution commonly called adr refers to various methods used to resolve legal disputes outside of a formal court proceeding generally these methods are less time consuming and are more cost effective than litigating in court making them attractive to a variety of individuals and entities involved in legal disputes. Conflict prevention and resolution alternative dispute resolution reference guide updated august 2010 establish or make available an alternative dispute resolution program. Alternative dispute resolution system is not intended to replace altogether the court adversarial system of resolving disputes it offers only appropriate options for litigation nevertheless there are kinds of disputes that the adr system cant handle such cases are constitutional law and criminal law in respect of which there is no