Mediation and Arbitration
While parties may submit their legal disputes to a judge or jury for resolution, mediation and arbitration offer two forms of alternative dispute resolution (ADR). In mediation, an impartial third party (the mediator) facilitates confidential negotiations between the parties, who are the ultimate decision-makers. In arbitration, the parties submit their dispute to an impartial third person (the arbitrator) for resolution in a proceeding that is less formal than a court setting. Arbitration can be binding, if previously agreed to by the parties, or nonbinding
Both mediation and arbitration offer significant benefits over protracted litigation:
Mediation
Arbitration
Both mediation and arbitration offer significant benefits over protracted litigation:
Mediation
- Private and confidential.
- Less expensive.
- Disputes resolved faster than waiting for a case to wend its way through the court system.
- Disputes resolved with finality, rather than subject to potential reversal on appeal.
- Mediator is an impartial facilitator who can assist the parties in exploring alternatives.
- Parties have more control over their own destinies by using self-determination to resolve their disputes rather than having them adjudicated by a third party.
- Parties tend to comply more with negotiated settlements than resolutions imposed by third party decision-makers.
- Mediated settlements can include customized, creative, and comprehensive agreements not available in a judicial resolution.
- Avoids the "winner-take-all" nature of a court resolution.
- Enhances the possibility of a more positive business or family relationship going forward.
Arbitration
- Private process with no public record of the proceedings.
- Time-consuming and expensive discovery can be avoided by limited exchange of appropriate documents, witness lists, and depositions.
- More timely than court proceedings, which are often delayed due to the court's backlog.
- Arbitrators with expertise and training in the dispute’s subject matter may be utilized.
- Because arbitration is less adversarial and more informal than litigation, it enhances the possibility of the parties continuing their business relationship.