As an alternative to litigation, which is often costly and time consuming, Alternative Dispute Resolution (ADR) methods such as mediation and arbitration are often beneficial. This is especially the case in disputes that are complex in nature and involve large sums of money. In these cases, ADR can assist the parties involved to settle or narrow down the issues of the dispute. ADR is also beneficial to parties with personal or business relationships that require confidentiality and favours early conclusion in order to achieve a positive solution for all involved.

The choice of ADR is dependent entirely on the nature of the dispute. Whereas mediation seeks to resolve a dispute between parties via a neutral third party, known as the mediator, arbitration is a judicial-type and more formal process where the disputing parties present their cases to an independent third party of their choice, known as the arbitrator. Arbitration is often favoured because the neutral third party is equipped with highly specialised knowledge and skills on the subject matter and makes a final and binding award, unlike other ADR methods.