The Difference Between Mediation and Arbitration

Whenever two parties are in a legal dispute, they can choose to settle the dispute in one of two ways: mediation or arbitration. While the goal of both of these legal tools is to reach a resolution or settlement that will satisfy both parties, they also have several major differences. Read on to learn the differences between mediation and arbitration, and how it may affect you.

What is mediation?

In regards to mediation, the disputing parties select a mediator to help them find a mutually beneficial resolution to the problem at hand. The two parties can choose to meet with the mediator together or separately — but ultimately, it is the duty of the mediator to act as a neutral third party by hearing the views of each party, communicating the differences among the parties, and proposing various solutions in hopes of solving the dispute. The mediator, however, cannot impose a determination or issue orders. In most cases, it takes a number of these sessions before the parties will find a way to resolve their dispute.

When the parties both mutually agree on a solution, they will enter into a written agreement. Generally, more people prefer mediation rather than court processes or arbitration because they feel they have more control over resolving their disputes. In fact, the parties are not even obligated to accept any of the mediator’s suggestions if they come to a better solution themselves.

What is arbitration?

Unlike mediation, the arbitration process is typically more formal, since it involves an appointed person to act as the arbitrator. Like a judge, the arbitrator hears the case of both parties, considers evidence, and allows attorneys to question witnesses before making a legally binding decision that cannot be challenged in a court of law. Both parties must consider the decision to be final and honor it. Out-of-court negotiations between parties are rarely done in arbitration. Because it is much shorter than civil court trials, requires fewer witnesses, and is cost effective, arbitration is beneficial to many people.

What is the difference between mediation and arbitration?

There are several basic differences between mediation and arbitration. The main difference is how they both come to an end. In arbitration, the arbitrator hands down the decision; while in mediation, the mediator encourages the two parties to come to a mutually agreed decision among themselves. Mediation can also end if the parties are deadlocked. Moreover, in mediation, the trial is stayed pending an outcome, whereas in arbitration, the trial is replaced by arbitration.

Hartpence Law Can Help Settle Your Disputes

If you are dealing with any legal disputes, the professional team at Hartpence Law can help. We have the experience and knowledge to resolve any type of dispute via mediation and arbitration and can garner a desired outcome for all.

If you or someone you love was involved in an accident, call us at (855) 680-4911 or schedule a free consultation.

Disclaimer: This blog is for informational purposes only and does not create an attorney/client relationship.