- The American Arbitration Association – AAA – says ODR is used in only a small percentage of all cases settled, but it has seen recent growth. In 2006, 3,000 of the 160,000 cases the AAA handled were done digitally.

- ODR, Online dispute resolution is a broad category: Any mediation, ar­bitration or dispute resolution that takes place outside of court and at least partially online qualifies. It differs from alternative dispute res­olution, which refers to processes outside governmental jurisdiction. ODR can mean anything from e-mailing documents and evidence to using videoconferencing to bring the sides together. And it has been most effective in international or long-distance disputes involving technology issues.

- ODR will always be most important for online businesses since it’s clear the Internet is not always a harmonious place, giving rise to many disputes. Often those disputes involve small dollar amounts, far-flung ad­versarial parties and seemingly petty issues. In the wildly popular online game Second Life, a dispute arose because one player put a nude image where another player would be forced to look at it. It’s the kind of thing that’s too small to litigate in the real world—but using Web mediation, it got resolved.

- ODR makes most sense in cases in which attorneys’ fees would exceed what could be recouped. But many large organizations, particularly insurance companies and municipalities, are finding ODR saves them money even in big-money cases because a matter can be handled much faster.

- ODR is faster because it is not dependent on getting on a mediator’s or judge’s calendar. Using e-mail, discussion groups and Web sites, agreements can be written, posted and responded to when convenient. And when something needs to get done fast, participants can log on to a chat or a secure online session and hash out a dispute no matter where in the world participants may be.

- ODR has the added benefit of simplifying jurisdictional issues. Such matters can be resolved at the outset once all parties agree. And there is greater flexibility for the adversarial parties, with each dispute process tailored to each dispute’s needs. As long as someone can get online, he or she can participate in the process.

ODR Aplications:

Online dispute resolution may not have taken over the process of solving conflict, but it has provided new, efficient and low-cost ways to reach the goal. The following are a few examples of ODR applications:

1. FILING A CLAIM ONLINE

SquareTrade uses a tool called Direct Negotiation, which handles all the communications through e-mail, including an online form to explain the complaint and possible resolutions, and contact with the defending party to see if it will counter. If Direct Negotiation doesn’t bring a settlement, a mediator can join in.

2. TRADING SETTLEMENT OFFERS

In Cybersettle’s system, a claims professional initiates the process with confidential offers. The opposition is notified by fax, e-mail or mail, and the respondent has three tries to settle the claim. If the complainant’s offer is less than or equal to the opposition’s, the claim settles.

3. DISCUSSING THE ISSUES

The E-Arbitration-T Open Source Groupware and Customer Relationship Management Suite allows parties to create an entire ODR system, handling online case document sharing between all parties and offering full security. Off-the-shelf solutions like wikis and whiteboards also allow parties to share information, discuss and collaborate on documents, and even reach agreements online.

4. SIGNING AN AGREEMENT

The federal E-Sign Act has validated the use of electronic documents and electronic signatures since 2000. Digital signatures can now be added to many commonly used documents, including those created with Adobe Acrobat 8.

More information in: Settling It On the Web.

“The addition of the American Arbitration Association’s Labor Arbitration Awards distinguishes LexisNexis as the top provider for labor arbitration materials,” said George Bearese, senior vice president of Legal Product Management and Content Development, LexisNexis. “The unparalleled depth and breadth of the LexisNexis content combined with these labor arbitration decisions creates a powerful labor and employment offering.”

With arbitration providing prompt, final resolution to a host of workplace issues, its use in resolving labor and employment disputes is growing. The ability of attorneys, corporate counsel, labor relations specialists, information professionals and others to quickly and easily access the arbitration decisions provided through this alliance is critical. Historical arbitration decisions can assist with arbitrator selection, preparation for arbitration hearings and with the drafting of collective bargaining agreements. AAA has arbitrators across the United States who resolve labor and management disputes for the public and private sector in industries that include manufacturing, transportation, government, and utilities.

“We look forward to working with LexisNexis over the coming months to provide our extensive Labor Arbitration Awards to labor and employment practitioners,” said Ted Pons, vice president of publications, American Arbitration Association. “The robust content offerings and ease-of-use of the LexisNexis services puts these awards at the user’s fingertips to help answer arbitration-related questions.”