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

Arbitration and mediation are two different types of dispute resolution methods used in insurance litigation cases in New Hampshire. The main difference between the two is that arbitration allows for an impartial third-party to make a final decision, while mediation encourages the parties to come to an agreement on their own. In arbitration, a neutral third-party listens to the evidence presented by each side and makes a decision that is binding on the parties, though the parties may jointly agree to make a decision by majority vote. This third-party is normally an attorney or a retired judge. Arbitration is usually a faster and less costly option than a traditional trial. On the other hand, mediation is a process in which two or more parties work toward an agreement with the help of a neutral third-party. This mediator does not impose a solution, but rather assists the parties in finding their own resolution to the dispute. Mediation is typically much less expensive and does not take as long as arbitration. In New Hampshire, insurance litigation cases often involve both arbitration and mediation. In some cases, arbitration may be used to settle the dispute, while in other cases, the parties agree to try mediation first to see if they can come to an agreement on their own. Both of these options are useful for resolving insurance litigation cases in New Hampshire.

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

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