What is the difference between arbitration and mediation?

The key difference between arbitration and mediation is the role of the arbitrator or mediator. In arbitration, the arbitrator is akin to a judge and passes judgment on the dispute; regardless if both parties are satisfied with the outcome or not. By contrast, a mediator does not pass judgment, but rather helps the parties to resolve the dispute by themselves. Arbitration is more formal than mediation. It usually has set rules of procedure and evidence similar to those of a court. In Maryland, for instance, the arbitration process is governed by the Maryland Uniform Arbitration Act. On the other hand, mediation is less formal and has no predetermined rules or guidelines. It is generally conducted as a series of private meetings between the parties and the mediator. The goal of arbitration is to render a binding decision on the dispute. The arbitrator will usually make their decision based on written arguments and oral presentations. In contrast, the primary goal of mediation is to help both parties reach a mutually satisfactory agreement with each other’s input. It is important to note that in Maryland, either party can terminate the arbitration at any time; however, both parties must agree to end the mediation process. Furthermore, the outcome of the arbitration process is generally final and cannot be appealed; whereas the outcome of the mediation process is usually nonbinding and can be appealed.

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What is the difference between arbitration and mediation?

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