ADR has several advantages over litigation:
Suitable for multi-party disputes
Lower costs
Likelihood and speed of settlements
Flexibility of process
Parties' control of process
Parties' choice of forum
Practical solutions
Wider range of issues can be considered
Shared future interests may be protected
Confidentiality
Risk management
However, ADR less suitable than litigation when there is:
A need for precedent
A need for court orders
A need for interim orders
A need for evidential rules
A need for enforcement
Power imbalance between parties
Quasi-criminal allegations
Complexity in the case