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CO Alternatives to Small Claims Court

Suing someone in court isn't the only way to solve a legal problem. There are alternative ways to solve your legal problems outside of court. These alternatives are called alternative dispute resolution or ADR for short.

ADR is a process in which a neutral person helps people resolve their case. ADR is designed to provide an opportunity to settle all or part of the case early on and keep the costs to a minimum.

There are many different kinds of ADR. But all of them use a neutral person to decide a case or help both sides come to an agreement without a trial. ADR is usually less formal, less expensive and less time-consuming than a trial.

Types of ADR

The most common types of ADR for civil cases are mediation, settlement conferences, neutral evaluation and arbitration. Parties in a civil case can use a mediator, neutral evaluator, arbitrator or settlement conference neutral for assistance in resolving a case. In some programs, ADR providers determine their own fee for their services.

Mediation

Some courts have a mediation program as an alternative to small claims court. In mediation, an impartial person called a "mediator" helps the parties reach a resolution to their dispute. Mediation leaves control of the outcome of a case to the parties. The mediator doesn't decide the dispute but helps the parties communicate so they can try to settle the dispute themselves.

Both the plaintiff and the defendant must agree to mediate before a session can be scheduled. Once an agreement is reached through mediation and the magistrate approves it, the conditions of the agreement are legally binding. If no agreement is reached, the plaintiff still has the right to pursue the matter in court.

Arbitration

In arbitration, a neutral person called an "arbitrator" does decide the outcome of a case. The arbitrator hears arguments and evidence from each side before making a decision. Arbitration is less formal than a trial.

Arbitration may be either binding or nonbinding. The plaintiff and defendant agree to be bound by the arbitrator's decision and give up their right to a trial in binding arbitration. Generally, the parties may not appeal an arbitrator's decision in binding arbitration. Nonbinding arbitration means that the parties are free to request a trial if they don't agree with the arbitrator's decision.

Neutral Evaluation

In neutral evaluation, each party gets a chance to present the case to a neutral person called the "evaluator". The evaluator then gives an opinion on the strengths and weaknesses of each party's evidence and arguments and about how the dispute could be resolved. The evaluator is often an expert in the subject matter of the dispute. Although the evaluator's opinion is not binding, the parties typically use it as a basis for trying to negotiate a resolution of the dispute.

Settlement Conference

Settlement conferences may be either mandatory or voluntary. In both types of settlement conferences, the parties and their attorneys meet with a magistrate, judge or neutral person called a "settlement officer" to discuss possible settlement of their dispute. The magistrate, judge or settlement officer doesn't make a decision in the case but assists the parties in evaluating the strengths and weaknesses of the case and in negotiating a settlement.

Settlement is always an alternative. Many cases settle, even if there are attorneys involved. If you settle, you can structure your own result, rather than having a magistrate do it.

Benefits of ADR

Some potential benefits of ADR are to:

  • Save time
  • Save money
  • Increase control over the process and the outcome
  • Preserve relationships
  • Increase satisfaction
  • Improve attorney-client relationships

If you decide that ADR, rather than small claims court, may be the better way to resolve your dispute, ask the clerk if the small claims court offers any programs. If not, the clerk may know of a publicly funded program in your county.

Questions for Your Attorney

  • How can I find out about what types of ADR programs are available to me?
  • What is the success rate of mediation?
  • Are there certain types of cases that work better using ADR?
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