What is the difference between mediation and arbitration in small claims court?

Mediation and arbitration are both methods of dispute resolution outside of the traditional court system. In California, both are available as alternatives to small claims court. Mediation is an informal process in which the parties to the dispute negotiate a resolution based on the advice of a neutral third party, or mediator. The mediator is an impartial party whose role is to help the disputing parties reach a mutually-acceptable agreement. The mediator does not make any decisions and does not impose any judgment on the situation. In small claims court in California, mediations are sanctioned by the court and conducted by trained mediators. Arbitration is a formal, binding process in which the disputing parties present their case to an arbitrator, who then decides the outcome. The arbitrator can order the parties to pay monetary damages or take other actions, such as returning property. Any agreement reached through arbitration is legally binding. In summary, the difference between mediation and arbitration in small claims court is that mediation is a non-binding process in which the parties to the dispute negotiate a resolution with professional guidance, while arbitration is a formal, binding process in which the disputing parties present their case to an arbitrator, who decides the outcome.

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What is the difference between mediation and arbitration in small claims court?

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