What are the key differences between mediation and arbitration?

What are the key differences between mediation and arbitration?

Mediation is a collaborative process where a neutral third party helps disputing parties reach a voluntary agreement. Arbitration, on the other hand, involves a neutral third party making a binding decision after hearing both sides.

Can you explain how the processes differ?

Sure! In mediation, the mediator facilitates discussion and helps parties negotiate, while in arbitration, the arbitrator listens to evidence and makes a decision that both parties must follow.

Which one is generally faster?

Mediation is typically faster because it focuses on negotiation and reaching an agreement, whereas arbitration can take longer due to the formal procedures involved.

Are there any situations where one is preferred over the other?

Yes, mediation is often preferred for disputes where parties want to maintain a relationship, while arbitration is chosen for more complex disputes requiring a definitive resolution.