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Some contracts state that the parties must ?mediate? a dispute before ?litigation? or ?arbitration.? Through mediation, the parties attempt to resolve their dispute with the assistance of a mediator. The mediator is not a decision-maker. Rather, the mediator assists the parties through facilitating a negotiation.
In a mediation process, a neutral, trained mediator works to help disputants come to a consensus on their own. In arbitration, a neutral, trained arbitrator serves as a judge who is responsible for resolving the dispute.
Begin mediation by listening to each person's story separately. Next, bring them together to meet face-to-face. Allow them an equal chance to speak and explain their perspective. Brainstorm mutually beneficial solutions and, once both parties settle on one, summarize the agreement.
Typically, mediation is a good choice if both parties believe they can work together to come to an agreement on their own. In cases where this doesn't seem possible, arbitration may be a better choice. If you're not sure which option is best for you, consider talking to a lawyer.
The most common combination of mediation and arbitration is med-arb, in which the parties attempt to resolve their dispute using mediation and proceed to arbitration only if they are not successful in reaching a settlement. Commentators praise this combination as offering the parties flexibility and efficiency.