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

Mediation and arbitration are both methods of settling a dispute in small claims court. Both processes are designed to help two parties come to an agreement out of court, reducing the cost and time associated with a regular court proceeding. The main difference between the two processes is that mediation is a voluntary negotiation between the two parties, while arbitration is a more formal and binding process. In mediation, the two parties make their own decisions with the help of a mediator. This mediator is typically a neutral third party who is knowledgeable in the dispute. They will listen to both sides, help the parties negotiate, and suggest solutions so that the two parties can reach a resolution. These solutions are not binding and must be agreed to by both sides. In arbitration, the arbitrator is an impartial third party who has the authority to make a final decision. Both parties present their points of view and the arbitrator makes a judgment based on the law and the evidence presented. This decision is binding and cannot be appealed. While both processes aim to help parties reach a resolution without having to go to court, the main difference between mediation and arbitration is that the mediator does not have any authority to make a decision, while the arbitrator has the power to make a binding decision that must be followed.

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

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