Faced with an ever-growing caseload within its Office of Consumer Protection, the Division established its Alternative Dispute Resolution Unit
(ADR Unit) in 1992. It serves as an independent, impartial, non-advocacy program within the Division.
Because of its success, the ADR Unit's role was expanded to incorporate many professional licensing boards, including the State Board of Medical Examiners, the New Jersey State Board of Cosmetology and Hairstyling and the New Jersey State Board of Architects.
The unit was further expanded in 1999 when it began resolving disputes through arbitration. The ADR Unit uses the two (2) most common forms of dispute resolution: mediation and arbitration.
Most of the participants in our ADR program have said that they found the process to be
"very good" or "excellent."
Mediation
Mediation is an informal, voluntary process in which a neutral third party assists those in conflict to reach a resolution which is acceptable to all parties. The mediator is not the decision-maker, but helps the disputing parties resolve conflicts by exploring all of the options and managing the negotiation process.
While mediation is a completely voluntary process, should the parties reach a written agreement, the agreement is binding and enforceable in court, like any other agreement. If the parties do not reach a mutually acceptable agreement, they are free to pursue legal action.
Arbitration
Arbitration is a voluntary legal process which takes place outside of the courts. In arbitration a neutral third-party acts as a decision-maker. Unlike mediation, the award issued by the arbitrator is legally binding and generally cannot be appealed. The arbitrator does not have to be a lawyer nor do the parties have to bring lawyers to the hearing. Those involved receive the opportunity to present their case to the arbitrator in their own words, without an overly structured, formal hearing.
When matters are arbitrated, parties are required to sign an Arbitration Agreement. Should either party fail to live up to the arbitrator's decision, the other party may go to the court of appropriate jurisdiction to have the award enforced.
Additional Information Regarding the ADR Unit
Volunteer Program |
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The Alternative Dispute Resolution Unit is not currently accepting applications for volunteer arbitrators or mediators at this time. Please continue to check this section for updates on when the Division will resume volunteer recruitment and applicant requirements. We thank you for your interest in public service by assisting the Division in the resolution of consumer disputes.
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