Compulsory Non-binding ADR

This article focuses on compulsory non-binding ADR when third parties have reputation concerns that make them dislike their decision be rejected by the adversary parties who in this event decide to insist on a court verdict. The third party is assumed to trade-off deviations from her favored decision and the possibility that her recommendation might be rejected by the parties. Given that non binding ADR takes place in the shadow of a court verdict, the third party's award might be diverted from her preferred outcome in the direction of the likely court ruling.