What are the differences between arbitration and mediation?

Arbitration and mediation are two forms of Alternative Dispute Resolution (ADR) that are commonly used in Alaska. ADR is an alternative way of resolving disputes outside of the traditional court system. The two main types of ADR are arbitration and mediation. Arbitration is a form of dispute resolution that is similar to a court hearing. In this process, both sides of a dispute appear before a third-party arbitrator who listens to both sides and makes a decision to resolve the dispute. This decision is legally binding, and the parties in the dispute must abide by it. In contrast, mediation is a much more informal dispute resolution process. Rather than an arbitrator, a neutral third-party mediator assists both sides of a dispute in coming to a settlement agreement that allows them to avoid the cost and time associated with a court hearing. The mediator helps the parties to identify areas of agreement and disagreement and to work out a mutually beneficial resolution. Unlike arbitration, the agreement reached in mediation is not legally binding. Although both arbitration and mediation can be effective methods of resolving disputes, deciding which one is right for a particular situation requires knowing the differences between the two. Arbitration is the more formal of the two, and the arbitrator’s decision is legally binding. Mediation is more informal, and the agreement reached by the parties is not legally binding.

Related FAQs

What is the timeline for a collaborative law process?
What is the role of the mediator in a mediation process?
What is the timeline for an arbitration process?
What are the benefits of using mediation?
What is the process of a private judging system?
How is the issue of confidentiality treated in arbitration?
Can discovery be conducted in a collaborative law process?
What types of disputes can be addressed through arbitration?
What types of cases are not suitable for a collaborative law process?
What is a private judging system?

What are the differences between arbitration and mediation?

Related FAQs

Related Blog Posts