When to Use Arbitration and/or Mediation
When you are in a dispute with another party, there are a couple of different legal avenues you can take to get the situation resolved. The question as always, is ……What is the best way to resolve this issue? Among the factors to be considered is what is the most economical and cost effective way to resolving the dispute.
What is the Difference Between Arbitration and Mediation ?
Arbitration is similar to going in front of a Judge appointed by the Court, but in this case, it is an experienced independent arbitrator, a neutral party, generally selected by both sides to a dispute. The big difference between arbitration and a court hearing is that the arbitration process can be handled quite a bit quicker and will therefore, be more cost effective than a court hearing. There is binding and non-binding arbitration. If you elect to participate in binding arbitration, possibly because you agreed to in a contract, or voluntarily by written agreement, the decision the arbitrator makes is just as if a Judge decided your case, except you have no right to appeal. If you go to non-binding arbitration, a neutral still hears your evidence and renders a decision, but in most situations it is not a final decision and the parties can proceed with litigation.
Mediation is another method of ADR services available to parties. This process is more about the parties negotiating a resolution between them, among a trained neutral party. In the long run, it is entirely up to the parties who are going through mediation to decide if they have arrived at a resolution that everyone can live with. Any agreement decided in this process is one that can be backed out of rather easily unless a formal settlement agreement (“a contract to settle”) is entered into. You can think a solution has been worked out amongst everyone, but if another party decided at the last minute they do not want to honor the deal, they do not have to. They can simply tell the Court they no longer agree, unless a written settlement agreement has been entered into. Mediations generally more confidential.
If you are having difficulty decided which avenue to take, speaking to an attorney at the LAW OFFICE OF MITCHELL B. HANNAH may help you move the process along. You will be able to obtain more information about which process is the right one for your situation to settle whatever issues you are facing.