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

Mediation and arbitration are two distinct methods of resolving conflicts that are often used in small claims court in Michigan. Mediation is a form of dispute resolution in which a neutral third-party, known as a mediator, works with both sides in a dispute to help them come to a mutually agreed upon resolution. The mediator does not have the power to make a decision, but instead acts as a facilitator to help the parties reach a resolution. Arbitration, on the other hand, is a more formal process in which the dispute is decided by an arbitrator. An arbitrator is a neutral third-party who is appointed by the court to hear arguments from both sides and then make a final decision. Unlike mediation, arbitration is binding, meaning that the parties must accept the arbitrator’s decision and the dispute is officially resolved. In small claims court in Michigan, mediation is often used as an initial step in resolving disputes between parties before they are taken to court. Mediation allows both sides to resolve their disputes without involving the court, which can save time and money. If the dispute cannot be resolved through mediation, either side can request to have the case go to arbitration, at which point the court will appoint an arbitrator to decide the outcome.

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

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