What Is the Difference Between Legal Mediation and Arbitration?

Mediation is an alternative conflict settlement method. The designated mediator negotiates with both parties in order to establish a settlement that will satisfy both parties’ demands.

What you will discover:

What Exactly Is Mediation?
What Exactly Is Arbitration?
What Factors Should Be Considered Before Using ADR?
What Characteristics Characterize Arbiters and Mediators?
Should You Use Alternative Dispute Resolution?

Even when you seem to have done everything correctly, disagreements might arise. It is usually a lengthy, difficult, and costly process to settle them in court. Alternative dispute resolution (ADR) approaches, such as mediation or arbitration, are sometimes seen as less difficult. In fact, they may be incorporated as the preferred form of dispute settlement in contracts. Whether you are thinking of signing a contract with an ADR provision like this, or you are in the middle of a dispute and searching for alternatives to going to court, here’s a primer on ADR procedures to get you started.

What Exactly Is Mediation?

Mediation is a conciliatory alternative conflict resolution method. The mediator, a neutral third person chosen by both parties in a mutual agreement or even in advance, is at the heart of this kind of ADR. The mediator negotiates with both parties in attempt to obtain an agreement that will satisfy both parties’ demands. The specific process of mediation differs from one mediator to the next, but it is always centered on finding a middle ground that will assist both parties and resolve a conflict.

What Exactly Is Arbitration?

Now that you know what mediation is, arbitration may come as a surprise. While it similarly depends on a neutral person nominated by both parties, the arbiter has a completely different job. Simply said, they examine the matter as submitted to them by both sides and then decide which side is correct. Arbitration might be mandatory or voluntary. In the former instance, a party cannot appeal the verdict unless they can show that the arbitrator was prejudiced against them. In the latter case, any party may ignore the arbitrator and litigate.

What Factors Should Be Considered Before Using ADR?

Alternative conflict resolution has several benefits. They are significantly speedier, less expensive, and usually highly successful. They should, however, be taken with caution. If the agreement says that the arbiter’s judgment is binding on both parties, mandatory arbitration might effectively deprive you of the ability to plead your case in court. As a result, any such item in the agreement you sign should be carefully considered, particularly how arbiters and mediators are recruited.

What Characteristics Characterize Arbiters and Mediators?

A mediator or arbiter is not need to be a legally qualified expert such as an attorney. This is not to argue that arbiters and/or mediators are uneducated. They are usually highly experienced and certified professionals in the sector in which they provide their services. For example, in landlord-tenant disputes, a real estate agent or property manager with years of experience—someone who knows the intricacies of the real estate market and the nooks and crannies of landlord-tenant relationships—may be chosen to arbitrate or mediate such cases.

Should You Use Alternative Dispute Resolution?

ADR may be an important tool for resolving conflicts, but before you commit to it or sign a contract that lists it as the main settlement technique, you should carefully evaluate the criteria listed above. When in doubt, get individualized advice from a lawyer.