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

Mediation and arbitration are two methods of dispute resolution that are available for people in small claims court in Maryland. Both processes involve working with a neutral third party to reach an agreement, but they differ in some distinct ways. Mediation is a voluntary process in which the parties try to reach an agreement with the help of a mediator. The mediator facilitates the discussion between the parties, helps them structure their conversation, and encourages them to reach an agreement. The mediator does not make a decision, but instead helps the parties come to an understanding on their own. Arbitration, on the other hand, is a more formal process in which the parties present their arguments in front of an arbitrator. The arbitrator will hear both sides of the case, consider evidence and testimony, and make a decision. The decision of the arbitrator will be binding on both parties, meaning they will have to accept and follow the arbitrator’s decision in order to resolve the dispute. In sum, mediation is an informal process in which parties work together to reach an agreement, while arbitration is a more formal process where the parties present their case before an arbitrator who makes a decision that is binding on both parties.

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