What are the differences between mediation and arbitration?

What are the 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.

Which one is generally faster?

Mediation is typically faster than arbitration because it focuses on negotiation and reaching an agreement, while arbitration involves a more formal process that can take longer.

Is one more expensive than the other?

Generally, mediation is less expensive than arbitration. Mediation often requires fewer sessions and less formal procedures, which can reduce costs.

Can I choose my mediator or arbitrator?

Yes, in both mediation and arbitration, parties usually have the option to select their mediator or arbitrator, allowing for a better fit for their specific dispute.

What happens if mediation fails?

If mediation fails, parties can still pursue arbitration or litigation to resolve their dispute, as mediation is a non-binding process.