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

In Indiana, Small Claims Court provides an avenue for individuals to settle legal disputes without the expense of hiring an attorney. Small Claims Court offers two alternative methods of resolution: mediation and arbitration. Mediation is a process in which an impartial third-party mediator helps both parties reach an agreement and settle the dispute. During the mediation process, the parties discuss the dispute and possible solutions with the mediator. The mediator does not render a decision or impose a solution on the parties. The parties must agree to any proposed settlement, which is then documented in a settlement agreement. Arbitration is a process in which one or more arbitrators make a decision after hearing the facts and arguments presented by both parties. The arbitrator acts as a judge to decide which party is right and who should get relief. The arbitrator renders a binding decision which is final and enforceable by the court. Unlike mediation, parties do not need to agree on the resolution, as the arbitrator’s decision is binding. In conclusion, mediation is a process in which all parties agree on the resolution of the dispute, while arbitration is a process where an arbitrator decides the outcome, which is final and binding.

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

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