ADR is a great cost-effective and usually quicker method of getting the parties to resolve disputes without the need for protracted dockets, litigation costs, and risky trials.
ADR usually consists of mediation (where both sides plea their case and make financial settlement demands and offers in a confidential setting to a neutral third party), the mediator.
This person usually has been professionally trained or very often trial lawyers and have a good finger on the pulse of just what cases are worth in that particular court system.
Since the mediator has confidential communications with both sides, s/he can gauge how far apart each side is and apply a little pressure so the Plaintiff will accept a little less and the Defendant will pay a little more. Plus, you don't have to incur a ton of costs for expert witness fees, etc. in the mediation because you can simply rely on that expert's written report instead of paying him for deposition or courtroom testimony. I love mediation.