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

Mediation and arbitration are two forms of dispute resolution available to litigants in Rhode Island Small Claims Court. The main difference between mediation and arbitration is how decisions are made. In mediation, both parties work with a neutral third party, such as a mediator, to come to an agreement about how to settle the dispute. The mediator helps to facilitate communication between the parties, but does not make any decisions. The parties have the ultimate control over the outcome. On the other hand, in arbitration, an independent arbitrator listens to both sides of the dispute and makes a decision, which is binding on the parties. The parties can negotiate their own settlement prior to arbitration, but ultimately the arbitrator will make the final decision. The decision of the arbitrator is binding on both parties, meaning they will have to abide by the arbitrator’s decision, even if they do not agree with it. In Rhode Island Small Claims Court, mediation is used more frequently than arbitration because it is less formal, takes less time and generally is less expensive. However, if mediation fails, the parties may proceed to arbitration to settle their dispute.

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

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