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Arbitration and mediation are two methods of resolving legal conflicts without having a trial. Both are part of an emerging practice area known as alternative dispute resolution (ADR).
Arbitration and mediation are looked on favorably by most courts because they help to unburden crowded court dockets. Sometimes the courts order parties to attempt mediation to see if the issue can be resolved without going to trial.
Mediation is a form of ADR where negotiation between the parties is conducted by a neutral third party. Mediators are neutral. The mediator acts as a referee, but he or she is also a facilitator. A mediator is a conduit for parties to discuss issues and helps identify issues and suggest ways to resolve the dispute.
The mediator does not have any authority over the parties to make them remain or settle in mediation. The mediator cannot make final judgments, but he or she does help the parties focus on the issues at hand.
Even though mediation is less formal than a trial, it may be beneficial to have an attorney representing your position. Mediation still involves a good deal of preparation and strategy.
The mediation process is helpful for disputes in which the parties have frequent contact because there is a better chance of mending the relationship. The rationale behind settling a case through mediation is that both parties will be happier with a result that is agreed upon, as opposed to a judgment handed down by the court.
Arbitration is another form of alternative dispute resolution, but it’s significantly different than mediation. While a mediator facilitates the negotiation process, an arbitrator has a more authoritative role.
The arbitrator is a neutral third party, just like a mediator, but the arbitrator typically conducts a hearing. During the hearing, the arbitrator hears evidence, testimony and argument from both sides. The hearing is still less formal than a trial.
The arbitrator may be agreed upon by both parties or appointed by an agency if the parties can't agree. The most important facet of arbitration is that the arbitrator's decision is binding - unless the parties only agree to submit to nonbinding arbitration.
Arbitration occurs by agreement and it’s typically seen in labor and commercial disputes. There are several types of arbitration that can occur, depending on the situation. Though the arbitrator's decision is final, it is subject to judicial review. Since the stakes are higher in arbitration, you may want to consult with an attorney who handles arbitration matters.
There is also a process called Meditation-Arbitration, where the parties first attempt mediation, but if that fails, the parties proceed to arbitration.Learn more about alternatives to court and find out how your case may benefit by speaking to an attorney near you.
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