Mediation and arbitration are alternative dispute resolution (ADR) processes designed to resolve disputes outside of the courtroom. Both processes are non-adversarial and informal, and both offer the parties involved some control over the outcome. However, mediation and arbitration differ in several key areas. Read on to learn more about these differences and whether one might be more appropriate than the other for your situation.
Mediation is a collaborative process in which the parties attempt to reach a resolution that meets their needs as well as the needs of the other person(s) involved. Mediation is non-adversarial and informal, and often takes place in a private setting. Mediation may be held in person or by phone, or it may be conducted online. Mediators are trained to remain neutral and assist the parties in finding a solution that works for everyone involved.Mediation is most commonly used in situations where the parties involved are familiar with each other and the issues at hand. For example, if you are renting a home from a friend and there is a dispute over the amount of rent due, you may want to use mediation to resolve the issue because you trust your friend to be fair and reasonable. Mediation can also be a good option if you have a child custody agreement and disagree about the best way to implement it. In these situations, the parties involved may not be familiar with each other and the issues at hand, so arbitration may be a better option.
Advantages of mediation:
More cost-effective - Mediation is often less expensive than arbitration because there are no legal fees associated with the process. Costs may be higher if the mediation is held in person and the parties need to travel to the location. If you are representing yourself in a mediation, you may have to pay the mediation facilitator a fee for his or her time.
More flexible - Mediation is a less rigid process than arbitration. In arbitration, there are a set number of steps to follow and specific procedures to follow. Mediation, on the other hand, is less structured and allows the parties involved to discuss and explore various options in order to come up with a solution that works for everyone.
More informal - Mediation is an informal process that allows the parties to choose the topics they want to discuss and the manner in which they want to discuss them. Arbitration, on the other hand, is a more formal process that involves an arbitrator who has specific rules and procedures to follow.
Disadvantages of mediation:
Lack of legal protection - Arbitration generally provides a higher level of legal protection than mediation. If you and your friend decide to use mediation to settle the issue of rent, you may be able to come to an agreement. However, if your friend decides to break the agreement or refuses to pay you, you have no legal recourse. If you and your friend have signed a lease agreement that specifies arbitration, the arbitrator will have the power to rule on any issues related to the lease. If you have a child custody agreement and one of you decides to break the agreement, the opposing parent may not agree to arbitration, and you may have no legal recourse.
Limited scope - Mediation is a limited process that focuses on the issues at hand and the parties involved. If you are renting a home from a friend and the agreement specifies that the rent is due on the first of each month, but the friend forgets to pay you and you decide to use mediation to resolve the issue, the conversation may focus on other issues, such as the friendship between the two of you, the good times you have had together, and your ability to trust each other in the future. The issue of unpaid rent may not be resolved because it is not a topic that the parties chose to discuss during the mediation.
Time-consuming - Mediation generally takes longer to complete than arbitration. In arbitration, the arbitrator has a set time frame in which to hear the case and issue a ruling, so if the parties agree to arbitration, they can expect a speedy resolution. In mediation, the parties may discuss issues for days or weeks without reaching a resolution.
If you want to settle a dispute quickly, you may want to choose arbitration over mediation. Mediation is a slower process than arbitration, and you may have to wait longer for your case to be heard. If you want the dispute to be resolved quickly and do not want to discuss other issues, such as the friendship between the two of you, the good times you have had together, and your ability to trust each other in the future, arbitration may be a better option.
If you have signed a lease agreement that specifies arbitration, you may want to choose arbitration over mediation because you are guaranteed a speedy resolution. If you have a child custody agreement and one of you decides to break the agreement, the opposing parent may not agree to arbitration and may choose to use mediation instead. In this situation, you may want to choose arbitration because you know you have a speedy resolution in the event that the opposing parent chooses mediation.
If you have a dispute over money and want to settle the issue quickly, you may want to choose arbitration over mediation. In arbitration, the arbitrator has a set time frame in which to hear your case, so you can expect a speedy resolution. If you have a dispute over money and want the issue resolved quickly, you may want to choose arbitration over mediation.
If you want to settle a dispute and are familiar with the other person, you may want to choose mediation over arbitration. In mediation, the parties meet with the mediator and discuss the issues at hand and the needs of the other person. If you and the other person are familiar with each other, you may be able to come to a resolution more quickly in mediation than in arbitration, where the arbitrator has more leeway.
If you want to settle a dispute and are familiar with the other person, you may want to choose mediation over arbitration. In mediation, the parties meet with the mediator and discuss the issues at hand and the needs of the other person. If you and the other person are familiar with each other, you may be able to come to a resolution more quickly in mediation than in arbitration, where the arbitrator has more leeway.
If you want to settle a dispute and are familiar with the other person, you may want to choose mediation over arbitration. In mediation, the parties meet with the mediator and discuss the issues at hand and the needs of the other person. If you and the other person are familiar with each other, you may be able to come to a resolution more quickly in mediation than in arbitration, where the arbitrator has more leeway.
If you want to settle a dispute and are familiar with the other person, you may want to choose mediation over arbitration. In mediation, the parties meet with the mediator and discuss the issues at hand and the needs of the other person. If you and the other person are familiar with each other, you may be able to come to a resolution more quickly in mediation than in arbitration, where the arbitrator has more leeway.
If you want to settle a dispute and are familiar with the other person, you may want to choose mediation over arbitration. In mediation, the parties meet with the mediator and discuss the issues at hand and the needs of the other person. If you and the other person are familiar with each other, you may be able to come to a resolution more quickly in mediation than in arbitration, where the arbitrator has more leeway.
If you want to settle a dispute and are familiar with the other person, you may want to choose mediation over arbitration. In mediation, the parties meet with the mediator and discuss the issues at hand and the needs of the other person. If you and the other person are familiar with each other, you may be able to come to a resolution more quickly in mediation than in arbitration, where the arbitrator has more leeway.
If you want to settle a dispute and are familiar with the other person, you may want to choose mediation over arbitration. In mediation, the parties meet with the mediator and discuss the issues at hand and the needs of the other person. If you and the other person are familiar with each other, you may be able to come to a resolution more quickly in mediation than in arbitration, where the arbitrator has more leeway.
If you want to settle a dispute and are familiar with the other person, you may want to choose mediation over arbitration