Arbitration vs. Mediation – the Basics

While both are forms of alternative dispute resolution, there are some important differences.

Arbitration may be referred to as a mini-trial. You might use arbitration if your lawsuit is ready to go to trial, but you want to avoid a trial held in a traditional courtroom. Instead of a judge, a single arbitrator or a panel of arbitrators preside over the arbitration session.

Mediation is “the attempt to settle a legal dispute through active participation of a third party (mediator), who works to find points of agreement and make those in conflict agree on a fair result.”

Informal or Formal?

When considering arbitration vs. mediation, formality may be an important issue. Courtroom trials tend to be very formal, which can make the whole proceeding more stressful for the average citizen.

Arbitrations still abide by a formal set of rules but tend to be less formal than a trial.

Mediation sessions tend to be far less formal than either a trial or an arbitration.

Evidence Presented

Just like at trial, the parties to an arbitration will present evidence. Some arbitration proceedings may even have a discovery period where the parties exchange documents and take depositions.

At a mediation, however, the parties negotiate a settlement. The mediator facilitates an agreement between the parties. Evidence might be presented, but the sessions usually consist of the parties discussing their viewpoints about the disagreement.

Court-Ordered?

Judges may require either mediation or arbitration. However, it is a little more common for arbitration to be court-ordered. In addition, contracts sometimes contain language required that arbitration be used to settle any disputes.

Binding or Not?

One of the most important differences between arbitration and mediation is the end result.

Mediations may end with a negotiated settlement agreement or no agreement at all. As a facilitator, the mediator does not force any decisions on the parties. However, settlement agreements signed by the parties usually are enforceable and hold up in a court of law.

Arbitration is a little more like a court trial in that the arbitrator(s) make a decision that is binding. In most cases, the parties cannot appeal an arbitrator’s decision.

Why Use Mediation to Solve a Legal Problem?

By avoiding a prolonged court battle, you can save money and time. Wouldn’t you rather spend your time enjoying life instead of sitting in a courtroom?

Attorney Bruce Adams is an Alabama attorney who knows how to listen to his client’s legal concerns and provide actionable advice. He also offers mediation services. Please contact Bruce at 256-237-3339 to set up an appointment. Our office is located in Anniston, Alabama, but we assist clients in surrounding Calhoun, Cleburne, Etowah, and St. Clair Counties.

The post Arbitration vs. Mediation appeared first on Bruce Adams.

Formal vs. Informal

Arbitration tends to be more formal than mediation. Parties involved in an arbitration present their case in a hearing similar to a trial. At the actual arbitration, the parties may be heard by one arbitrator or a panel. The arbitrator may have formal rules and regulations about how the arbitration will proceed and how the parties are to act.

On the other hand, mediation is more informal. The mediator meets with the parties and their attorneys at an agreed-upon time, date, and location. Typically, everyone consults together, then break out into small groups. The mediator moves between the groups facilitating agreements that lead to settlement. However, the parties are not required to settle at a mediation.

Legally Binding or Not?

After an arbitration hearing, the arbitrator or arbitrators make a decision on the case presented to them. The decision is usually legally binding on all parties. In most cases, the decision is not appealable.

However, the decision reached in a mediation is a mutual agreement between the parties. The mediator does not serve as judge and jury. Instead, he or she facilitates a settlement that typically is not legally binding. However, the disputing parties tend to feel more satisfied because they reached the agreement instead of having a solution forced on them.

Faced with Arbitration vs. Mediation, Which Will Be Right for You?

One day, you or your company may be sued or just find yourself in a serious disagreement that cannot with be resolved. If so, either arbitration or mediation – or both – may be a timely, less expensive solution to a courtroom battle.

When you need an attorney, call Bruce Adams. He has the skills and experience to help with your business and estate planning concerns. Please contact us at 256-237-3339 to set up an appointment. Our office is located in Anniston, Alabama, but we assist clients in surrounding communities like Oxford, Jacksonville, Heflin, Gadsden, and Pell City.

The post Arbitration vs. Mediation: Aren’t They the Same Thing? appeared first on Bruce Adams.