What is the difference between arbitration and mediation?
Arbitration and mediation are two different forms of alternative dispute resolution (ADR) law commonly used in the state of California. Both of these methods are used to resolve conflicts outside of the traditional court system and are popular among parties seeking to maintain privacy. Arbitration involves having a neutral third-party act as an arbitrator to listen to evidence and testimony from both sides of a dispute and then provide a binding decision. This decision is usually legally binding and enforceable, although the arbitrator usually cannot award damages. Mediation, on the other hand, is an informal process that generally involves the parties in the dispute meeting with a neutral third-party who attempts to help them find common ground and reach a resolution. Unlike arbitration, the mediator cannot make any final decision, but instead acts as a facilitator to help the parties in the dispute reach an agreement on their own. The mediator’s role is to help the two sides in the dispute identify their interests and reach a mutual agreement, instead of a decision being imposed upon them. In conclusion, arbitration and mediation are two different types of ADR law used in California and have different roles. Arbitration is when a third-party makes a binding decision, while mediation is an informal process of helping the parties reach an agreement on their own.
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