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

Mediation and arbitration are both methods of dispute resolution that can take place in small claims court in Texas. Mediation is a process where a neutral third party, called a mediator, helps two sides in a dispute reach a compromise or settlement. The mediator does not make a decision and has no authority to do so. Instead, they work with the two sides to help them understand one another’s objectives and come to an agreement that both parties can accept. Arbitration, on the other hand, is a more formal process in which a third-party arbitrator listens to both sides and makes a binding decision based on the evidence and arguments presented to them. The arbitrator’s decision is legally binding and cannot be appealed. The arbitrator also has the power to impose sanctions, issue restraining orders, and award damages if necessary. The main difference between mediation and arbitration in small claims court is that mediation seeks a mutually-agreed-upon resolution and arbitration results in a legally-binding decision that is imposed by an authoritative third-party. While the two processes are similar in that they both potentially result in a resolution to the dispute, they are quite different in terms of the authority granted to the third-party and the degree of control over the outcome that each party has.

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

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