NEWS
THE DIFFERENCE BETWEEN MEDIATION AND ARBITRATION
Mediation and arbitration are two common forms of alternative dispute resolution that can be used to resolve conflicts outside of the courtroom. While they both share some similarities, such as being less formal and quicker than going to court, they differ in several key ways.
Mediation is a process in which a neutral third party, called a mediator, assists the parties in reaching a mutually acceptable solution to their dispute. The mediator does not have the authority to make a decision, but rather facilitates communication and helps the parties find common ground. The mediator's goal is to help the parties reach a settlement that is acceptable to everyone. Mediation is often used in cases where the parties have a continuing relationship, such as divorce, workplace disputes or disputes relating to attorney charges in an ongoing litigation.
Arbitration, on the other hand, is a process in which a neutral third party, called an arbitrator, is appointed to hear the evidence and make a decision. The decision of the arbitrator is binding on the parties, meaning that they must abide by the decision reached. Arbitration is often used in cases where the parties have a dispute over a specific issue, such as a contract or a business dispute.
Some other key differences between mediation and arbitration include:
Role of the third party:
In mediation, the third party (mediator) is a neutral facilitator who assists the parties in reaching a mutually acceptable solution. In arbitration, the third party (arbitrator) is a decision-maker who hears evidence and makes a binding decision.
Decision-making:
In mediation, the parties themselves make the decision about the outcome of the dispute. In arbitration, the decision is made by the arbitrator, and the parties must accept the decision reached.
Process:
Mediation is a more informal process, with the parties often sitting together in the same room to discuss the issues. Arbitration is more formal, with the arbitrator hearing evidence and making a decision in a manner similar to a court hearing or taxation.
Timeframe:
Mediation can often, be completed more quickly than arbitration, which can involve a more formal hearing with evidence.
Cost:
Mediation is generally less expensive than arbitration because it does not involve a formal hearing with evidence.
Overall, mediation and arbitration are both useful tools for resolving disputes outside of the courtroom, and the choice between the two will depend on the specific circumstances of each case.