DIFFERENCE BETWEEN MEDIATION AND ARBITRATION
Mediation and arbitration are both forms of alternative dispute resolution (ADR), meaning alternatives to the expensive and time-consuming litigation of a lengthy court battle. Mediation and arbitration are similar in that they bring together parties in conflict to resolve an issue outside of the courtroom, but each has its own unique way of doing so.
Arbitration is private process where parties work with a neutral third party to hear both sides and make a final and binding decision, using agreed-upon rules governing how the process will work. Mediation is a negotiation facilitated by a neutral third party. The mediator does not impose a decision, but helps the parties come to an amicable resolution.
A mediator helps parties negotiate a settlement that will satisfy all the parties. A mediator does not decide a dispute but an arbitrator functions more like a judge, deciding the outcome of a dispute based on evidence and law presented in an arbitration.
Arbitration is binding, and the outcome can be enforced like a court order. Parties must agree to arbitrate and must sign an arbitration agreement online a mediation which is not binding.
Mediation is useful to help the parties find common ground, while arbitration is used as an alternative to litigation when the parties cannot resolve their dispute and need a third-party to impose a decision.
Arbitration is most commonly used in the resolution of commercial disputes and is distinct from mediation which is common in the settlement of labour disputes between management and labour unions.
Mediation is a non-binding process generally conducted with a single mediator who does not judge the case but facilitates discussion and eventual resolution of the dispute.
Arbitration on the other hand is typically a binding process that replaces the full trial process with multiple (often three) chosen people to serve as judges in your case
In mediation, the parties are brought together in an environment where they can freely and confidentially present their position in front of a neutral third party. The neutrality and more relaxed atmosphere of mediation may eliminate the desire to continue hostile litigation once both parties have seen all the issues in a fair light.
WRITTEN BY: CHAMAN LAW FIRM TEAM
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