It is common for conflict to arise between two or more parties. Sometimes, it is difficult to figure out how to find a solution to the problem. In many instances, one must consider an alternative dispute resolution (ADR), such as arbitration or mediation. It is important to know the difference between the two and consider which one is best for your particular situation.
It is process in which two or more parties look to solve a dispute between them by relying purely on an arbitrator. It is has certain similarities with a trial due to the opening statements given by the parties and also with presenting evidence to the arbitrator.
Typically, the arbitrator is neutral party that has complete authority to make definitive decisions about the dispute between the parties. In a way, the arbitrator is a bit like a judge and make final decisions that can be binding or non-binding. When it is the former, then the decision is final and no one can appeal the decision. However, if it is non-binding, the arbitrator’s decision will only hold if, and only if, both parties accept it.
The process is somewhat different from arbitration. The main difference is that a mediator’s decision is typically non-binding and the process of mediation encourages discussion between the parties, were the mediator is the middleperson and eases communication between them.
Mediation has increased in popularity throughout the years and many have considered it an important process in the litigation process. It has grown in popularity due to its accessibility and confidentiality; it is a far more relaxed environment.
In the end, the ADR process of choice depends purely on the parties and with what they intend to achieve.