What is the difference between mediation and arbitration?

Mediation and arbitration are both forms of alternative dispute resolution (ADR). ADR is a method for resolving disputes outside of the court system. In Texas, both mediation and arbitration are governed by the Texas Arbitration Act. Mediation is a voluntary process in which a neutral third-party mediator facilitates communication between the two parties in a dispute to help them reach a mutually-agreed-upon resolution. The mediator does not take sides, and does not make a final decision. The goal of mediation is to help the parties resolve their dispute without having to go through the court system. Arbitration, on the other hand, is a more formal process in which a neutral third-party arbitrator hears the arguments of both parties in a dispute and makes a final decision. Unlike the mediator, the arbitrator does take sides, and is the final decision-maker. The arbitrator’s decision is legally binding, and can be enforced in court if necessary. In summary, the difference between mediation and arbitration is that in mediation the parties attempt to resolve the dispute on their own, with the help of a mediator, while in arbitration the parties are legally bound by the decision of an arbitrator.

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