What are the main differences between arbitration and mediation?
Arbitration is essentially a less formal trial conducted privately before a panel of one or three (usually) neutral arbitrators who may or may not be retired judges. It is a binding process, resulting in the arbitrator’s award, which can be converted to a judicial judgment and enforced as such. Mediation, in contrast, is a nonbinding form of confidential settlement negotiation, facilitated by a trained impartial (neutral) outside mediator, who leads the parties (usually assisted by their counsel) to reach a voluntary resolution that is confirmed in a written agreement. The mediator helps the parties identify issues, explore options, mend fences constructively, and reach a mutually acceptable outcome. Mediators do not decide or determine issues (unless asked to serve an evaluative role), but may assist the parties in exploring alternative solutions they might not have considered on their own. The parties ultimately control the decision whether to settle and the terms of any resolution.
