what is arbitration?

Question

what are the differences between arbitration and mediation?

Answer 1

Arbitration is the referral of a case to a court wherein the parties are binded with the decision while mediation is the use of a third party to act as the link between two conflicting parties to settle disputes amicably.

Answer 2

Nope.

Arbitration is a private informal mini-trial, similar to the way small claims cases work. The parties present their case, including evidence and documentary support. They can call witnesses and take depositions, but the rules of evidence are often relaxed. Lawyers are generally allowed to represent the parties, and some arbitration models even allow non-lawyers as representatives.

Arbitration can occur in many contexts. It is common in construction defect cases, where an architect or engineer is often the designated arbiter. For legal disputes, the arbiter is usually an attorney or a retired judge. Some arbitration companies have the own procedural rules while some use the Federal Rules of Civil Procedure as the basic framework. The key factor in arbitration is that at the end of the process, an arbiter makes a determination (similar to a court judgment) about who won and what they should get.

Arbitration can be binding or non-binding. For it to be binding, the parties must have agreed to arbitrate, either at the time of the dispute or in the original contract under which the dispute arose. If the arbitration proceeds to a final determination (or dismissal on the merits), either party may petition a court to confirm that award, which gives the award the same effect as a court judgment. Some courts also have arbitration programs, which allow or require parties in a lawsuit to resolve some or all issues in arbitration sponsored by the court. Again, these arbitrations may be binding or non-binding, depending upon the statute.

Non-binding arbitration is also called early neutral evaluation. It follows the same procedure as a binding arbitration, except that the determination is only an advisory opinion. It's purpose is to give the parties a sense of how the case would likely resolve, but in a very inexpensive manner compared to a full trial. The result of some non-binding arbitrations can become binding if both parties stipulate (agree) beforehand to accept the result and not challenge it, in which case the award may be confirmed by the court as above.

The benefits of arbitration are that the case may be resolved for a fraction of what it normally costs to proceed through a full trial. The downside is that the arbiter is not as bound to the requirements of law, and that you usually have to pay the arbiter by the hour ($200 to $400 is common).


Mediation is a cooperative voluntary process by which parties attempt to resolve their differences through structured negotiation. It has nothing to do with arbitration, and is structured completely differently in terms of what happens and what the goals are.

The goal of mediation is to assist the parties in reaching a mediated settlement agreement, through a process similar to negotiations. The role of the mediator is to guide the process and assist the party in focusing on a resolute to the dispute, rather than on the conflict itself. Unlike arbitration, the mediator does not make any determinations about who is right or wrong, nor about what the evidence shows. The only thing the mediator does is play referee and cheerleader, and guide the party towards reaching a resolution.

The end result of mediation (if it succeeds) is a settlement agreement which is as binding as any contract and can be enforced by a court, or read by the court into a judgment if the mediation occurred during a lawsuit. This settlement, like any contract, is fully voluntary. In fact, a professional mediator will not allow a party to commit to a settlement agreement reached through mediation if they know the agreement was the result of duress or improper undue influence.

The benefits of mediation are that the parties can craft a solution entirely to their own liking, and the goal of mediation is to create a win-situation, unlike arbitration or trial where one side usually loses. The limitations of mediation are that, unlike arbitration or trial, if the parties don't reach an agreement there is no resolution at the end, because the mediator cannot impose one.

Answer 3

Mediation is simply a settlement conference between parties in a dispute with a third party designated as a mediator who tries to point out the various weaknesses and strengths in the respective cases to the parties in an attempt to bring about a settlement of the dispute. If the parties do not work it out, there is no consequence. Arbitration on the other hand, is really a trial that does have consequences. A decision will be made by the arbitrator which is just as binding as a judgment issued by a court of law. Arbitrators just like mediators are third party organizations not affiliated with the court system. Many contracts now contain provisions which require arbitration in the event of a dispute. Most large companies feel that they will get a better deal from an arbitrator than a jury. People who have signed an arbitration agreement should be aware that the courts almost always enforce this type of provision.

Answer 4

The results of mediation is not binding while it is with arbitration.

A mediator helps the parties to discuss and find solutions. He or she may even offer ideas to help the parties to some kind of agreement. However the mediator makes no decisions and the parties do not have to come to a final resolution.

In arbitration, the two side agree before hand that they abide by the final decision of the arbitrator. The arbitrator listens to both sides of the story and at the end he or she will enter a final decision binding the two parties.

Mediation and arbitration are frequently used in civil and business disputes as more expedient and less costly means or resolving disputes in instead of going through the long process of law suits. There are many private for profit companies that offer their services as mediators or arbitrators.

There are many cases of high profile mediation and arbitration in union wage negotiations in the past. A good example of political mediation is the current fighting in Lebanon where different countries are trying to mediate and "encourage and convince" the warring parties to stop.

Answer 5

"Arbitration"
Definition: Legal proceedings conducted by an impartial third party called an arbitrator, that attempt to resolve disputes. Arbitration is an alternative to a lawsuit, but the final decision is just as legally binding. Collective bargaining agreements and other employment contracts might require arbitration to resolve union-employer or worker-employer disputes, instead of lawsuits. Government agencies might ask workers who file charges against employers to agree to arbitrate, instead of suing in court. Because the final decisions of arbitration are legally binding, it's a good idea to hire an attorney to sit on your side of the table. But it's typically not required.
mediation n. 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. Mediation differs from arbitration in which the third party (arbitrator) acts much like a judge but in an out-of-court less formal setting but does not actively participate in the discussion. Mediation has become very common in trying to resolve domestic relations disputes (divorce, child custody, visitation), and is often ordered by the judge in such cases. Mediation also has become more frequent in contract and civil damage cases. There are professional mediators, or lawyers who do some mediation for substantial fees, but the financial cost is less than fighting the matter out in court and may achieve early settlement and an end to anxiety. However, mediation does not always result in a settlement.

There really isn't a large difference between the two. Generally speaking, the court will order arbitration when it's a civil matter.. and if it's a family matter they call it mediation. Both are supposed to save the court time, and the parties involved will spend less if they come to an agreement before court.

Answer 6

Arbitration is legally binding, mediation is not.
Mediation is a lot cheaper, often free (FMCS).
If the issue cannot be resolved through mediation it can go to arbitration. It is a pre arbitration processs where a mediator helps to resolve the isssue.
Almost all the court shows on TV are arbitrations.

Answer 7

Hello,

arbitration: settle a dispute as arbitrator; to decide something in dispute or controversy upon its merits and upon evidence.

mediation: to help settle a dispute; to come between disagreeing elements

Answer 8

how long does arbitration take

Answer 9

Company court. Better off going through the regular court system so that you won't be jacked.

Answer 10

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