What is a legal dispute resolved outside of a court known as?

A legal dispute resolved outside of a court is known as Alternative Dispute Resolution (ADR). This term encompasses various methods, such as mediation and arbitration, which provide parties in a dispute with options for resolving their issues without going through the formal court system. ADR can be advantageous because it often results in quicker resolutions, lower costs, and more flexible outcomes that can suit the needs of both parties better than a court verdict.

ADR is particularly useful in situations where the parties wish to maintain a relationship or find a solution that is mutually agreeable, rather than a win-lose outcome typically associated with court litigation. Courts often encourage or require ADR processes as a first step before proceeding with litigation, emphasizing its role as an effective alternative to traditional judicial proceedings.