Mediation vs Arbitration: Which One is Right for You?
Which route should you take when it’s between mediation vs arbitration? Well first, it helps to lay out and study the pros and cons.
So, to gain a better understanding of these two meanings and processes, read everything you need to know right here.
Introduction
Mediation. Arbitration. Do these words mean anything to you? Do you have any idea what they are or how they affect court cases – maybe even your own? While having an attorney affords you the comfort in knowing someone is looking out for your own interest, you should always have an idea of the legal process – and your rights.
And, let’s be honest, words like mediation and arbitration are not part of our everyday vocabulary. Yet, they get thrown around quite a bit. Let’s take a look at these two words and give meaning and understanding to them.
Mediation: Defined
Court cases are often initiated due to a dispute. In an effort to reduce court resources and increase the chance of an amicable solution, many cases are sent to mediation. This is a confidential process (unlike that in the courtroom) between each party and a mediator.
The mediator is a neutral, uninterested third party that helps facilitate the discussion. He or she is not a judge and cannot give any legal advice. He or she can also not make any decisions when it comes to the case. You may want to think of the mediator as the messenger, in a sense, between each party.
If an agreement is reached, the mediator will present each party in the case with a form stating the terms that have been agreed upon. Once each party signs, it becomes a legally binding agreement.
The mediation process itself, though, is non-binding. That means if you can’t reach a solution or you don’t like the best possible scenario achieved during mediation, you don’t have to accept it. You can still get your case heard in front of a judge.
Benefits of Mediation
Mediation can be very beneficial to both the court system and you, personally. After all, fighting legal battles can be incredibly expensive – and can get very public, depending on the case. Mediation is known to be the most affordable and peaceful method of settling a dispute.
Court cases can be lengthy, especially if the judge’s calendar is full. With mediation, cases can be cleared up quickly – without having to wait for the courts. Plus, you will find these additional benefits:
- The ability to talk at ease, without a formal courtroom process.
- The ability to witness the process of conflict resolution, which can later be applied to other situations in your life.
- Creative solutions can be discussed, allowing them to think outside the box.
- There is no winner or loser, just an amicable outcome.
Remember, this is simply a process to work through. If an outcome can’t be achieved, that’s ok. For most people, mediation is a great option – and definitely something that should be considered first and foremost.
Arbitration: Defined
Arbitration is a method of dispute resolution that is a bit more formal than mediation. It runs more like a trial, with the process of presenting evidence, offering witness testimony, and make legal arguments. Each side presents their case and the arbitrators (generally 1 to 3 of them) decide the case – much like a judge would. In fact, many arbitrators are retired judges or experts in the field that is the subject of the lawsuit.
If this sounds like a regular court case, you are right. Here’s the difference – you can’t pick your judge, but in arbitration, the parties can pick the arbitrators.
When you agree to arbitration, you are agreeing to the outcome. That’s right – arbitration is a legally-binding process. Once the process is concluded, whatever the outcome is based on the arbitrator’s decision, that’s the outcome of your case. You may even want to consider it an all-or-nothing sort of deal – especially since you cannot appeal the decision.
The case is decided with the arbitrators and will never find its way in front of a judge.
Benefits of Arbitration
It’s true that arbitration is often less expensive than dealing with a trial and that it keeps your private business out of the public eye, but we should also mention that this is a much faster and less-formal court process. And, the fact that you can choose the arbitrator is a major bonus. And, if you are a large business, putting an arbitration clause in your contract can make it difficult for smaller businesses or consumers to reach a fair agreement.
Unfortunately, though, there are some downfalls to choosing arbitration:
- It is binding. If you don’t like the outcome, you have no further recourse. There is no appeal as there would be in a regular court case.
- You are getting a ruling from an arbitrator who may or may not be fully objective.
Which Option is Right for You?
If you find yourself in a situation where you need to choose between mediation and arbitration, always choose mediation first. Think about this for a moment:
A married couple who seem to be in a very rocky territory will not simply run out and file for divorce after the first fight, right? No, they will often fight and then try to work through their problems. There are ups and downs, gives and takes. Sometimes they will see a marriage counselor. Some people will agree to separate. And, when they realize there is no other option, they will file for a divorce. This is where things can get ugly.
In your own court case, agreeing to try to work through the problem at hand is the best way to reach an amicable outcome. Choosing to take your case in front of a mediator to come to a healthy solution is your best option. Mediations are non-binding, confidential, and can clear things up rather quickly.
Mediation vs Arbitration: The Conclusion
Don’t move forward with your court case or choose arbitration before you have tried to work things out in mediation.
You can always talk with your attorney and determine what it is you hope to achieve with mediation and what you are willing – and not willing – to settle on. You may be surprised at how well an unbiased mediator can handle disputes without ruining relationships.
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