What are the differences between arbitration and mediation?

What are the differences between arbitration and mediation?

Arbitration is a binding process where a neutral third party makes a decision, while mediation is non-binding and focuses on negotiation.

Which one is generally faster?

Mediation is usually faster because it involves negotiation rather than a formal hearing process like arbitration.

Can you explain the costs associated with each?

Arbitration can be more expensive due to fees for the arbitrator and legal representation, while mediation is often less costly.

Is one more formal than the other?

Yes, arbitration is more formal, resembling a court trial, while mediation is more informal and collaborative.

Which option is better for resolving disputes?

It depends on the situation. Mediation is better for preserving relationships, while arbitration is suitable for binding resolutions.