Anyone who has ever been through the litigation process knows that it involves an uncertain amount of time, a little legal strategy, and a lot of money. Some civil cases do not have to go through the entire mess, though. Alternative Dispute Resolution (ADR) methods can involve either mediation or arbitration. A business contract sometimes has built-in provisions for how “breach of contract” disputes are to be settled – check the fine print of your credit card terms, for example. What does all that mean?
ARBITRATION
Arbitration is a type of alternative dispute resolution (ADR), but unlike mediation it is similar to a formal mini-court hearing without all the pomp and circumstance. The parties appear before an arbitrator, or a panel of arbitrators. The arbitrator is a neutral party (often a retired judge or attorney) with extensive legal experience in similar cases. Parties in the dispute are generally represented by attorneys and have participated in the discovery process – but are going to arbitration in lieu of a traditional trial. In the arbitration, evidence is presented, and witnesses may still be questioned and cross-examined, and the arbitrator makes a decision – or judges the case. In binding arbitration the arbitrator’s decision is final. There are no appeals as parties have agreed to accept the arbitrator’s decision ahead of time.
MEDIATION
Mediation is a process where a neutral mediator assumes the role of facilitator and is not a decision-maker. The parties meet with the mediator to work out the resolution of the dispute, typically the parties meet with the mediator together in informal meetings to work towards a complete resolution. The mediator facilitates the discussion, provides education, and steers the parties away from the emotional positions and reactions that are keeping them from moving forward. Agreements made in mediation sessions are voluntary and, once made, are generally as binding as any written contract. In general the mediator does not judge or otherwise render a decision as to the outcome of the issue being mediated.
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Mediation and arbitration are both great alternatives to resolving disputes while spending the least amount of time, complication, and money – however they are very different forms of dispute resolution each more appropriate for certain cases. In cases where the two sides have equal investment in the outcome, such as cases involving divorce, custody, professional fees, business partnerships, workplace conflicts, or neighbor disputes – mediation is the best option as it allows those personally involved to create a solution that works for them.
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Tags: alternative dispute resolution, arbitration, choosing mediation, Conflict Resolution, Dispute Resolution, Litigation, Mediation
