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

In North Carolina, mediation and arbitration are two different types of proceedings used in small claims court. Mediation is a process in which a neutral third-party facilitates negotiations between two or more sides involved in a dispute, with the goal of finding a mutually agreeable resolution to the dispute. In mediation, the mediator typically does not make a final decision, but instead works with the parties to help them find a compromise. Arbitration is a different type of proceeding used to resolve disputes. In arbitration, a neutral third-party (the arbitrator) makes binding decisions that are legally enforceable. The parties present their arguments and evidence to the arbitrator, who then listens to both sides of the dispute and makes an objective decision on the outcome. The arbitrator’s decision is final and binding. In summary, mediation is a less formal process in which a neutral third-party assists the parties in finding a resolution to the dispute, while arbitration is a more formal proceeding in which a neutral third-party renders a decision on the dispute that is legally binding.

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

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