What is the difference between mediation and arbitration?

Mediation and arbitration are both forms of alternative dispute resolution (ADR) used to resolve disagreements without going to court. The main difference between the two is that mediation is a voluntary process in which an impartial mediator works with the two parties to try to reach a mutually agreed upon resolution. In contrast, arbitration is an adjudicative process in which an arbitrator – typically a lawyer or retired judge – hears both parties’ arguments and makes a binding decision. In California, arbitration is governed by the California Arbitration Act, which allows businesses and individuals to voluntarily enter into arbitration agreements. The arbitration process typically begins with one party filing a demand for arbitration with a third-party arbitrator. The parties then exchange evidence and conduct hearings before the arbitrator, who issues a binding decision which is usually enforceable in court. In contrast, the California Code of Civil Procedure encourages the use of mediation to resolve disputes. Unlike arbitration, mediation does not involve a binding decision but instead focuses on the parties coming to a voluntary agreement. During a mediation session, the parties are given the opportunity to discuss their issues and develop their own solutions with the assistance of an impartial mediator. The mediator is not authorized to make a decision but rather facilitates a settlement. Overall, the main difference between mediation and arbitration is that arbitration involves a binding decision while mediation focuses on the parties coming to an agreement. Both forms of ADR are available to help resolve disputes in California.

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What is the difference between mediation and arbitration?

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