The Difference Between Arbitration and Mediation

arbitration and mediation

All About Settling Legal Disputes Out of Court

Many courts have options in place to keep people out of the courtroom and help to settle disputes in other ways. These are called mediation and arbitration.

Arbitration and mediation are very similar. They are an alternative means to regular litigation and often used in conjunction with a litigation. Sometimes the courts will give couples the option of using arbitration or litigation during a divorce proceeding to see if they can’t come up with an agreeable solution to dividing their assets.

A mediator’s job is to listen and help facilitate the negotiations between the two parties. In an arbitration, the arbitrator’s job is to ensure that the couple comes to an agreement.

Facilitators and Panels

Both proceedings employ a third party that will be the facilitator. This person oversees the entire process and helps the couple to talk things out. Mediation is non-binding and arbitration is a binding process.

In short, arbitration is a means in which to avoid litigation or court proceedings. The very process of arbitration or mediation may be voluntary or it may be compulsory (required by the courts).

It’s not at all unusual for arbitration to be done with a panel of arbitrators. They will assume the role of judge and make appropriate decisions depending on the evidence that is presented to the arbitrator. They will also give a written opinion. Decisions are made by the majority rule which is why there are usually three arbitrators to a panel.

A mediator, on the other hand, will typically just sit in on the discussion and help to move things along by gently nudging both parties to talk things out and come to an agreement. They assist in helping to facilitate the discussion and ensure that the couple doesn’t get hung up on little details nor sit and argue about things that don’t pertain to the case.

Reduced Cost

By using arbitration and mediation, the cost of court dockets and trials is greatly reduced. It’s far more cost-effective to use arbitration and mediation than it is to tie up the courts in arguing over who gets what.

Mediation has a very high success rate as both parties are in an environment where they can present their side of things to an uninterested third party that will help them to put things into perspective. It’s an ideal way to limit the issues and keep them in their proper perspective. Since it’s a neutral location, both parties are much more likely to sit and listen than to stress over who gets what. It reduces hostility and helps everyone to see things in a more clearer light.

A Pre-emptive Strategy

One advantage to mediation is that it can be used for anything, there is no need to wait for a lawsuit. This can stop huge issues before they become huge.

Mediators are not allowed to give any legal advice under any circumstances. All participants will be told this right up front and if any legal advice is desired they will have to seek the advice of an attorney.    http://www.casadellamemoria.org/facts-about-arbitration/

Everything You Need To Know About Arbitration

all about arbitration

What Is An Arbitration?

If you are worried about litigation costs, court congestion, and delays in your case, then an arbitration will be able to solve your problem. Without having a civil court lawsuit or trial that can give negative emotional impact to you, this alternative dispute resolution technique can be a great way to settle your case.

Compared to a trial, an arbitration is a less formal way of dealing with a case. In this arrangement, an arbitrator is hired by both parties to judge and make final decisions. This decision is non-appealable and can only be appealable in certain circumstances. An advantage that an arbitration gives you is that you can choose your judge and when and where you want the case to be heard which is not possible when you have a court trial.

The Pros Of Having An Arbitration

-Arbitration will cost you less than litigation. The process is also shorter and informal.
-Both parties have control over the selection of an arbitrator.
-The hearings of an arbitration are private and the results will not be a part of a public record.

The Cons Of Having An Arbitration

-The evidence process is informal in an arbitration. This means that sorting out the evidence mainly depends on the arbitrator’s skills and experience. An arbitration also has no interrogatories or discovery process.
-No formal appeals process. Since an arbitrator’s decision is non-appealable, you may not be able to protest his decision unless you can prove that the arbitrator was biased or acted with malice.
-Because arbitrations are private hearings, it can be a disadvantage to another party.

How To Start The Arbitration Process?

The arbitration process starts with a party sending a letter that demands an arbitration. The opposing party should send a response also in writing that will indicate if they believe that the case is arbitrable. After this, the parties will then choose an arbitrator or a panel of arbitrators for the dispute.

The process of arbitration is almost similar to a trial where the parties will make an opening and closing arguments, will present testimonies and witnesses and documents. Evidentiary rules are not applicable to arbitration.

Different Forms Of Arbitration

Compulsory Arbitration

Public employees in the United States such as police, teachers, and firefighters are required to participate in an arbitration to negotiate the terms of their collective bargaining agreements. This kind of arbitration is used to prevent a strike that might affect the public. This is also called a binding arbitration because the decision made in this kind of arbitration is binding and final.

Court Annexed Arbitration

In this kind of arbitration, the parties will have the right to bring the case to a trial if they are not satisfied with the arbitrator’s decision. Court annexed arbitration will also require the parties to arbitrate instead of voluntarily participating in the process.

Deciding whether to have an arbitration, mediation or a trial can be very tricky and difficult. Conflicts may also occur especially if both parties can not decide or agree with one decision. But having enough knowledge on the pros and cons of an arbitration and the steps that should be taken for it will help you weigh in your decision. 

The Different Types Of Arbitration

forms of legal arbitration

Which Arbitration Do You Need?

Arbitration is a method that is commonly used to settle legal disputes. This option is available if both parties agree to it. A written contract usually needs to be signed to state that both parties agree to arbitration. The contract usually includes details regarding when arbitration will be made and which issues it will address. These are the different types of arbitration used to resolve conflicts.

Interest Arbitration

This process consists in having a neutral party listen to both sides and review the facts. The arbitration is based on the facts that were found. The purpose of this type of arbitration is to determine if one of the parties has been wronged.

Grievance Arbitration

This type of arbitration is used when there is a complaint regarding the violation of a contract. A neutral party will review the facts and the contract to determine whether or not the terms of the contract have been violated by one of the parties.

Statutory Disputes Arbitration

The purpose of statutory disputes arbitration is to determine whether a specific case falls under a label such as discrimination. The outcome of this type of arbitration will determine how the case is processed.

Pendulum Arbitration

This is a type of arbitration that is often used in industrial and commercial disputes. A pendulum arbitration presents the arbitrators with two possible options. The neutral party has to determine which position is the most reasonable and choose one of the two options. This process is also known as baseball arbitration.

Night Baseball Arbitration

This type of arbitration is similar to pendulum or baseball arbitration. The only difference is that the arbitrators are presented with the facts without knowing about the identity of the parties on the two sides of the dispute. This process allows the arbitrators to make a neutral decision without being influenced by who the two parties are.

Bracketed Arbitration

This type of arbitration allows the two parties to settle for the minimum amount of reparation determined by the arbitrators. Both parties can agree to a bracketed arbitration in advance for cases that involve a financial reparation.

Legally-Binding Arbitration

This type of arbitration is often agreed upon in advance as a contract clause. The outcome of this type of arbitration replaces a litigation and both parties might have to perform specific actions as a result of the arbitration. The decision can be enforced by a court of law if both parties agree to this term prior to the arbitration.

Nonbinding Arbitration

There are no legal obligations associated with this type of arbitration. Nonbinding arbitration can be a way to settle conflicts without going to court. The purpose of this type of arbitration is to find a resolution to an issue.

These are the main different types of arbitrations. If you are thinking about settling a dispute with this method, you should reach out to the other party and determine what kind of arbitration would be most relevant for the dispute you want to settle.