What is the difference between mediation and arbitration?

Mediation and arbitration are two forms of alternative dispute resolution (ADR) that are used in lieu of litigation in Virginia. Both provide parties with a way of resolving disputes outside of the court system, but the two processes are different in a few key ways. Mediation is an informal negotiation process that allows the parties to reach an agreement in a mutually agreeable manner. In a Virginia mediation, the mediator acts as an impartial facilitator, helping the parties to identify their interests and common objectives in order to arrive at a solution that is acceptable to both sides. Mediation does not require a third party to make a binding decision on the matter; instead, the goal is for the parties to mutually negotiate a resolution on their own. Arbitration, on the other hand, involves a third-party decision maker who is authorized to make a binding decision. The arbitrator listens to evidence presented by both sides, takes into account applicable laws, and renders a decision that is legally enforceable in Virginia. Unlike mediation, where the parties retain control over the outcome, the arbitrator has the authority to make a decision that is binding on the parties. Overall, mediation is an informal, nonbinding process in which the parties work together to negotiate a resolution, while arbitration is a binding process in which a third-party decision maker renders a decision that is enforceable in Virginia.

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