Arbitration vs Mediation
ADR, or Alternative Dispute Resolution, is a method for resolving disputes without going to court. It can provide a faster, less expensive, and more satisfying outcome for all parties involved. Arbitration and mediation are two common forms of ADR, and while they share some similarities, there are key differences between them.
Key Takeaways
- Arbitration is more like a court proceeding, with an arbitrator acting as a judge and making a binding decision.
- Mediation is a more facilitative process, where a mediator helps the parties negotiate and reach their own resolution.
- Both arbitration and mediation are less formal, less expensive, and faster than going to court.
What is Arbitration?
Arbitration is a dispute resolution method that is more similar to a court proceeding. An arbitrator, who is usually a legal authority such as an attorney or judge, is appointed to hear and consider evidence before making a decision. This decision is binding on both parties and is often final, as the contract may specify that it cannot be challenged in court. Arbitration can be more efficient than a court trial, with a fixed duration and a limited number of witnesses to save time.
What is Mediation?
Mediation is a more facilitative dispute resolution process. The mediator does not make a decision, but rather assists the parties in reaching a negotiated resolution. The mediator helps to facilitate communication between the disputing parties and may present alternative solutions, but the parties are free to accept or reject these suggestions. The parties ultimately come up with their own negotiated settlement, which is acceptable to all involved.
Differences between Arbitration and Mediation
- Arbitration and mediation are both ADR mechanisms, but arbitration is more formal and decision-based, while mediation is more facilitative and negotiation-based.
- Arbitration involves an arbitrator acting as a judge, while mediation involves a mediator acting as a facilitator.
- An arbitrator is a neutral legal authority who makes a binding decision, while a mediator does not make a decision but helps the parties negotiate a settlement.
- Arbitrators are typically legal authorities, while mediators can be specialists in other fields as well.
- ADR processes generally do not have a dress code, which can save time and effort compared to court proceedings.
In conclusion, arbitration and mediation are both alternative dispute resolution methods that can save time, money, and effort compared to going to court. However, arbitration is more formal and decision-based, while mediation is more facilitative and negotiation-based. Understanding the differences between these two methods can help individuals choose the best option for resolving their disputes.
