Mediation vs. Arbitration:  These two forms of alternative dispute resolution share some similarities, but in the final analysis, they are not the same process.  Both mediation and arbitration normally keep parties in dispute away from courts of law.

Mediation vs. Arbitration: The Details

Mediation is a form of dispute resolution that is best suited for use with minor disputes.  Because mediation is non-binding, the parties retain the right to go to court afterwards, if the settlement is not satisfactory.  A typical process involves a mediation attorney talking in turns with both sides of the dispute, trying to arrange a solution that will be acceptable to both parties.  Because court remains an option if the mediation fails, mediation does not work well when the parties choose to be unreasonable.

Arbitration, on the other hand, is usually a binding process that allows parties in dispute to come to a final resolution of their disagreement.  In most cases, court is not an option when the arbitration concludes.  In arbitration, the parties submit their disagreement along with all pertinent details to an arbitration attorney who will function more or less like a judge, hearing evidence and then issuing a binding decision.  Arbitration is conducted much like a trial and usually lacks the give and take of compromise that can characterize mediation.