Mediation Services versus Arbitration: What’s the Difference?
|Mediate2go: Mediation Services versus Arbitration: What’s the Difference?|
Intro - Forms of Alternative Dispute ResolutionMediation and Arbitration are two forms of alternative dispute resolution (ADR). This means that they are ways of settling disputes without having to resort to the court system and traditional litigation. Remember that the starting point to both mediation and arbitration is consensual. That is, both parties have decided to use mediation or arbitration as a “first resort” rather than simply going to court. Some jurisdictions in Canada and the United States have mandatory mediation for certain types of disputes.
Often, a mediation or arbitration process may arise because the parties have a contractual relationship that specifies that any disputes will be solved by such methods. Other times, the parties voluntarily agree to do so because it appears that a mutually agreeable result might be more readily attainable, or because a more timely decision is needed than would be available through the courts. Another major benefit is that both are private, so evidence and any settlement or order that is eventually reached need not be disclosed to the public.
What is Arbitration?
Advantages to Arbitration
Issues with ArbitrationThose considering arbitration should be aware, however, that the financial costs are not necessarily lower than relying on the court system. Any lawyers and representatives still need to be paid, as does the arbitrator. Depending on the rules of the arbitration agreement, it may or may not be possible to award “costs” as part of the decision. The potential limits on the right to appeal may not sit well with parties who initially agree to such terms, but then find themselves on the losing end.
What is Mediation?
Mediation, a more flexible process
Advantages to Mediation
Issues with Mediation
Mediation versus Arbitration: Conclusions
About the Author
Dan Lawlor is a Mediate2go Blogger focused on estates and commercial dispute resolution. Dan is a graduate of McGill University's Faculty of Law with interests in conflict resolution, business law and writing. He played an important role as a director with Mediation at McGill, building connections with the community to improve outreach. Currently he is a lawyer with Campbell Mihailovich Uggenti LLP in Hamilton, Ontario. Dan loves team sports, reading, and traveling.