What is the difference between arbitration and mediation in insurance litigation cases?

In California, arbitration and mediation are two different forms of dispute resolution used in insurance litigation cases. Arbitration is when a neutral third-party, called an arbitrator, makes a final and binding decision to resolve the dispute. The parties to the dispute agree in advance to be bound by the arbitrator’s decision, so once it is issued, the decision is usually not open to appeal or overturning. Mediation is different from arbitration in that the mediator does not make a decision in an insurance litigation case. Instead, the mediator facilitates the negotiation between the two parties and helps them reach a mutual agreement on the issue at hand. The mediator does not have the power to issue a final and binding decision, so any agreement reached is voluntary and may be subject to approval by a court. Both arbitration and mediation are less expensive and time consuming options than a full trial, and are often used to resolve differences in insurance litigation cases. Ultimately, the parties to the dispute determine which option is most suitable for them, based on what they hope to achieve.

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What is the difference between arbitration and mediation in insurance litigation cases?

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