What is the difference between arbitration and mediation?

Arbitration and mediation are both forms of alternative dispute resolution (ADR), a legal term for settling disputes without going to court. While both involve the help of an intermediary, there is a distinct difference between the two. Arbitration is a form of ADR in which both parties present their case to an appointed arbitrator who reviews the facts and renders a decision. The parties have no control over the decision-making process and must accept the decision of the arbitrator. The arbitrator’s decision is legally binding and can be enforced in court if one or both parties disagree with it. Mediation, on the other hand, is a voluntary process in which both parties come to an agreement with the help of an impartial mediator. In mediation, the mediator does not make any decisions and instead serves to facilitate discussion between the parties. The parties are free to negotiate a settlement agreement, which is binding and enforceable, but there is no guarantee that the parties will come to an agreement. In summary, arbitration involves an appointed third-party who makes a binding decision while mediation involves an impartial mediator who helps facilitate an agreement between the parties. In Alaska, as in many other states, both forms of alternative dispute resolution are accepted and encouraged.

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