What is the difference between mediation and arbitration?
Mediation and arbitration are two different processes used to resolve disputes. In Oregon, arbitrations are conducted by a neutral third-party arbitrator, selected by both parties, and binding decisions are made. Mediations, on the other hand, are conducted by a third-party mediator who assists the disputing parties in reaching a mutually acceptable resolution. The main difference between mediation and arbitration is that in mediation, the parties are free to negotiate any agreement that is acceptable to both sides. The mediator does not make any decisions and the parties are encouraged to reach a resolution that both are satisfied with. In arbitration, an arbitrator will listen to both sides and make a binding decision that is legally enforceable. The arbitrator has the power to decide which side wins and what damages are to be awarded. Arbitration is generally faster and less expensive than a traditional court trial, but the parties must abide by the decision of the arbitrator and have no right to appeal. Mediation is beneficial in that it allows the parties to work out a resolution between themselves and have more control over the outcome. If the parties are able to come to an agreement, the terms agreed to are usually binding and enforceable. In summary, the biggest difference between mediation and arbitration is that in mediation, the parties are free to negotiate any agreement mutually acceptable to both sides, while in arbitration, an arbitrator will make a binding decision which is legally enforceable.
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