What is the difference between mediation and arbitration?

Mediation and arbitration are two methods of resolving civil disputes outside of the court system in Hawaii. Mediation is a voluntary negotiation process typically facilitated by a third party who does not act in the role of a judge. The mediator’s job is to facilitate communication between the parties and help them reach an agreement on their own. The mediator does not have the authority to make decisions or impose a settlement. Arbitration is a process in which a neutral third-party arbitrator hears both sides of a dispute and makes a binding decision on the outcome. This can be either determined before or during arbitration. The arbitrator can make a ruling or award based on the evidence presented by both sides. The arbitrator’s decision is binding and usually cannot be appealed. The main difference between mediation and arbitration is that mediation is a voluntary negotiation process while arbitration is a legal process that is often initiated after a dispute has occurred. Mediation provides the parties with an opportunity to work out a settlement on their own, while arbitration involves a third-party making a ruling or award based on the evidence presented by both sides.

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