What is the relationship between securities arbitration and mediation?

Securities arbitration and mediation are both forms of alternative dispute resolution (ADR). ADR is when people or businesses decide to resolve a dispute outside of court. Arbitration and mediation are both forms of ADR, but they have different functions. Arbitration is a process where an impartial third-party, often an attorney, will hear both sides of the case and make a legally binding decision. This decision is legally binding, so both parties are obligated to abide by the terms of the arbitrator’s ruling. Mediation on the other hand is when an impartial third-party, not an attorney, works with both sides to come to a mutually agreeable solution for the dispute. A mediator does not make a ruling but instead acts as a facilitator to help the parties reach a mutual agreement. In securities arbitration and mediation in California, both parties may choose to attend mediation prior to arbitration. This is a way for both sides to try to come to a mutually agreeable solution before resorting to an arbitrator’s decision. If the parties are unable to come to a resolution they can proceed to arbitration. In summary, securities arbitration and mediation are both forms of ADR, and they can be used together to try to come to a mutual agreement before resorting to a ruling by an arbitrator.

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What is the relationship between securities arbitration and mediation?

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