This is an order given by the court declaring a person as an insolvent. It is carried out in various forms, but most commonly occurs in the court system. It offers the possibility of obtaining an enforceable decision in a very short period of time and at a fraction of the cost of litigation.

The notice of adjudication must state:

  • the date of the notice;
  • nature and a brief description of the dispute and of the parties involved;
  • details of where and when the dispute arose;
  • the relief or remedy that is sought.

Advantages: One advantage of adjudication is that the final decision will be made by a group of unbiased peers. This can help prevent bias and result in a relatively “fair” outcome. Another advantage is that all evidence available will be presented and this includes witness testimony and party testimonies. Each side will be able to equally share their side with the jury and judge. The one consistently cited advantage of adjudication is the extent to which, despite adjudicators’ decisions having only “temporary finality”, for all practical purposes, they result in the final resolution of the dispute.

Disadvantages: Taking a case through adjudication can be the longest process out of all ADR methods. The case will be very time demanding and can result in time away from work, school, and family. An adjudication trial will also cost a lot of money for both parties. Attorneys and court costs make up a significant amount of these costs. Perhaps the greatest disadvantage of adjudication is the risk of “rough justice”. This risk arises in two ways: the speediness of the process and the difficulty of challenging an adjudicator’s decision.