Mediation Vs Arbitration Definition With The
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How to fill out Mediation Agreement?
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FAQ
Unlike an arbitrator, the mediator is not the decision-maker and does not resolve the dispute ? but rather facilitates communication so the parties can reach a resolution that works for both of them. Mediation is especially useful when opposing parties have a relationship they want to preserve.
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.
Unlike mediation, the arbitration process is binding, which means that the parties are legally obligated to accept and comply with the arbitration decision/award rendered by the arbitrators. Without question, mediation should almost always be the first step in working towards resolving a dispute.
What's the difference between mediation and arbitration? 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.
The main distinction between the two is who makes the final decision. With mediation, the final decision is a reached agreement between the two conflicting parties, while arbitration calls on an arbitrator to analyze the case details and reach a verdict.