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

Mediation and arbitration are both forms of dispute resolution in Small Claims Court in Virginia. However, they are two different processes that involve different approaches. Mediation is a form of dispute resolution in which the two parties involved meet with a neutral mediator to discuss their differences and try to reach a compromise. The mediator does not have the authority to decide the outcome of the dispute, and instead provides guidance to help the parties come to a mutually agreeable resolution. Arbitration, on the other hand, is similar to a trial. In arbitration, the parties in the dispute present their case to an arbitrator, who then makes a decision in the case. The arbitrator’s decision is legally binding and both parties must adhere to it. The main difference between mediation and arbitration is that in mediation, the mediator does not make a decision, while the arbitrator does. Mediation is often seen as being a less formal, less expensive, and less confrontational approach to dispute resolution than arbitration. However, arbitration often results in a legally binding decision that both parties must follow.

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