What is the difference between mediation and arbitration?

Mediation and arbitration are two methods of resolving disputes in civil procedure in South Carolina. Mediation is a voluntary process where an impartial third party, known as a mediator, helps the two parties in a conflict try and come to an agreement. Typically, mediators do not make decisions or judgments but instead act as facilitators to help the two parties come to a mutual resolution. Arbitration, on the other hand, is a more formal process where a neutral third party, known as an arbitrator, listens to both sides of the dispute and makes an official, binding decision that is enforceable in a court of law. The arbitrator’s decision is legally binding and cannot be appealed. Both parties must agree to abide by the arbitrator’s decision for it to be enforceable in court. Overall, mediation is a more informal and voluntary process while arbitration is a formal, binding process. In mediation, the focus is on the parties finding common ground and coming to an agreement while in arbitration the focus is on the arbitrator making an impartial decision. Generally, mediation is a less expensive and more time-efficient way to resolve disputes than arbitration.

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