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

Mediation and arbitration are both forms of alternative dispute resolution (ADR) that can be used in a South Carolina small claims court. Mediation is a process in which a neutral third-party mediator facilitates discussions between both parties to help them reach an agreement out of court. During mediation, both parties have an opportunity to negotiate and discuss possible solutions to the dispute. The mediator does not make a decision, but rather assists the two parties in reaching an agreement. Arbitration, on the other hand, is a process in which a neutral third-party arbitrator listens to both sides’ arguments and makes a decision in the settlement of the dispute. Arbitration is usually binding and cannot be changed or appealed unless provided in the arbitration agreement or statute. Unlike mediation, the arbitrator has the authority to make a decision on the dispute and impose a final solution on the parties. There are several advantages and disadvantages to each type of dispute resolution. Mediation discussions are usually less stressful and less adversarial than arbitration hearings, and it allows both parties to come to their own agreement. Arbitration is often faster and less costly than going to court and, in many cases, it opens the possibility of appealing the decision. Ultimately, the decision of which type of dispute resolution to use should be based on the facts of the case and the preferences of both parties.

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

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