What are the differences between arbitration and mediation?

Arbitration and mediation both fall under the umbrella of Alternative Dispute Resolution law in Maryland. While both methods provide an alternative to litigation, they differ in how they handle disputes. Arbitration is a process in which both parties in a dispute agree to submit it to a neutral third party, the arbitrator. The arbitrator will then conduct a hearing in which all parties have the opportunity to present their case and discuss the issues at hand. After hearing all of the evidence, the arbitrator will then render a legally binding decision. This decision is often referred to as an “award”. The award is final and binding on both parties. Mediation is another form of Alternative Dispute Resolution law in Maryland. Unlike arbitration, the parties involved in the dispute retain the right to settle the dispute on their own terms. In mediation, the parties agree to work with a neutral third party, the mediator. The mediator helps the parties to come to a mutually agreeable settlement. The settlement is guided by the mediator, who is responsible for ensuring that all parties understand the terms of the agreement. Unlike arbitration, the mediator’s role is limited to providing advice and facilitating settlement between the two parties. The outcome of a mediation is not legally binding and the parties are free to accept or reject it. Ultimately, arbitration and mediation are two distinct methods of handling disputes without going to court. While arbitration is often legally binding, mediation is not. In all cases, Alternative Dispute Resolution is a viable and cost effective option for resolving disputes.

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What are the differences between arbitration and mediation?

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