The Similarities and Differences Between Mediation and Arbitration

ADR (Alternative Dispute Resolution) is much more common than Litigation (lawsuits). Compare the similarities and differences between mediation and arbitration (two common ADR methods).

Mediation is a confidential legal process that a neutral third party involved as a mediator and works with both sides in the dispute to facilitate a resolution, but not a decision-maker. It is used to prevent the settlement of disputes in court. Mediation process is informal. It does not follow rigid requirement of evidence or procedure used in the formal litigation. Success depends on the ability of the parties to reach an agreement. The mediator talks with the parties, emphasizes the point of agreement and assist the parties in order to assess their options. The mediator also help the negotiation process and towards an agreement. Mediation is a non-binding process. It does not restrict the ability to pursue the dispute further unless the parties reach an agreement, select to be bounded by the terms of this agreement.

Like mediation, arbitration is also legal process used to avoid settling a dispute in court. Arbitrator, neutral third party would also participate during the arbitration. The Neutral third party would be an individual professional or panel of experts. An arbitrator hears a dispute and imposes a resolution on the parties. From the book, the parties in arbitration usually agree that the third party’s decision will be generally binding and cannot be appealed, although the parties can also agree to nonbinding arbitration. The process is more formal than mediation, although it is still usually less formal than litigation.

Arbitration and mediation provides many of the same benefits. Both allow the disputing parties to resolve their conflicts outside of the traditional court system.  Mediation and arbitration are also similar in that they both can resolve disputes quickly and usually less expensive than litigation. They are both confidential proceedings, and...