Arbitration vs Mediation

The Differences Between Arbitration and Mediation 

When it comes to deciding if you should go through a dispute resolution (DR) system, the differences between mediation and arbitration can be significant. There are several benefits and drawbacks associated with each one, but they are both equally viable options in many situations. In this article, we’ll take a closer look at both of these methods and why you may want to consider which one is best for your particular needs.

Arbitration vs. Mediation

 Mediation or arbitration choices are available in a variety of different settings in the United States. However, they each have their set of pros and cons. So, let’s take a look at the main differences between these two methods.

 With arbitration, you mostly agree to resolve the matter in a court-like fashion, and this tends to be more challenging to reach than with a dispute resolution process. Many people who use arbitration for their disputes choose to do so because it’s not a court process. Instead, they’re represented by a neutral third party, like a judge or lawyer.

 This type of process usually only lasts for a specific duration of time and generally isn’t meant to deal with ongoing disputes. Instead, the parties involved in the arbitration process work together to sort out any disagreements that might arise from the case. The terms and conditions of the settlement are then determined, and the parties involved receive the written results.

 If you and your dispute settlement company are unable to agree on the terms of the settlement, you can go to court. When this happens, you’re usually represented by a lawyer who will represent you before the court recover your losses.

 Because the parties aren’t actually in court, mediation can be a lot easier to accomplish. That means that you don’t have to worry about going to trial with your dispute, dealing with a lengthy court battle. Instead, mediation means that the parties must meet with a neutral third party to sort out any underlying issues that might come up between them.

 The downside of mediation is that it’s a lot easier to file a lawsuit if things don’t go well, rather than going through the trouble and expense of going to court. If you do lose in mediation, your legal fees are likely to be high. You will also deal with the hassle and expense of hiring a lawyer.

 Of course, both arbitration and mediation can help you resolve your disputes quickly. However, they have their own set of pros and cons, and you may decide that you prefer one over the other.

 Arbitration means that the parties involved in a dispute can enter into a court-like situation to work out whatever differences they may have. That tends to be a much quicker way of settling disputes than going through the formalities of a court case since you won’t have to go through the trouble of hiring a lawyer to represent you. Instead, you enter into a court-like situation where you’ll both sign an agreement.

 On the flip side, mediation can be a slower way to sort out a dispute because it takes longer than arbitration. While it does take longer than a trial, it can also take a long time to sort out the issues that arise from the case. 

 In many cases, the parties have to wait while the case is negotiated and decided. Arbitration is often preferable to mediation for significant disputes because it can be more expensive than mediation. Since negotiation costs time and money, arbitration can also be more costly in the long run. With mediation, the costs are minimal and recovered quite quickly, but it can be a bit more difficult to recover costs once the case is complete.

Arbitration vs Mediation


 Mediation is an informal facilitation process through which an experienced mediator acts to bring both parties together to reach an agreement that works for both parties. In mediation, a dispute is not necessarily there but only a potential dispute. 

 In arbitration, a dispute is often the basis of the final judgment. For this reason, many find mediation to have less impact on the outcome than other means. Arbitration involves both parties in the case, while mediation tends to deal with one or two parties alone.

There are plenty of differences between arbitration or mediation when it comes to resolving disputes. Both methods of dispute resolution are beneficial, but you should evaluate whether you need one or another for your particular case.