Mediation vs. Arbitration
I’m often asked the difference between mediation and arbitration, so I thought I’d touch base with the answer in case you ever need the information for yourself.
The main difference between arbitration and mediation is that in arbitration, a neutral third party hears the evidence and makes a decision. In mediation, the neutral third party negotiates with both sides in the dispute to reach a solution. An arbitrator functions like a judge, whereas a mediator is more like a negotiator.
Here are a few other things to keep in mind:
- Once an arbitrator arrives at a decision, the decision is binding on the parties involved whether they agree with it or not.
- Arbitration is a good choice in disputes where parties want an objective party to render a fair decision, but they would like to avoid the formality, expense, and time necessary for a trial. It’s also ideal when both parties prefer confidentiality, desire to save time and money, and are okay with waiving their chance of appeal.
- Arbitration ends when a decision is handed down. Mediation ends when a settlement is reached or when the parties are deadlocked.
Though arbitration has many advantages, it’s wise to consider all your options when facing a legal matter. Should you or someone you love need further guidance or have additional questions, I’m just a phone call away. That’s why I’m here.