What is the difference between mediation and arbitration?

What is the difference 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 without formal procedures.

Are the decisions in arbitration legally binding?

Yes, decisions made in arbitration are legally binding and enforceable in court, unlike mediation outcomes which are not.

Can you choose your mediator or arbitrator?

Yes, in both mediation and arbitration, parties usually have the option to select their mediator or arbitrator.

Which method is more cost-effective?

Mediation is generally more cost-effective than arbitration due to its shorter duration and less formal process.