Both Mediation and Arbitration are potentially involved in any given litigation setting. In some cases they can be compelled by the Rules of Court and also can be utilized outside of the litigation setting whenever there is a dispute.
Arbitration and Mediation are the most commonly used methods of Alternative Dispute Resolution (ADR).
The fundamental difference between the two is as follows:
Mediation involves an independent third party neutral (the mediator) who works to bring the parties to an agreement. The mediator is effectively a process-person and has no power to make a decision. There will only be a resolution if both parties are satisfied.
Arbitration involves an independent neutral, who is a decision-maker. The parties present their case and the arbitrator will make a decision. An arbitration award is similar to a court award in that it is an enforceable decision which will likely please one party but not another.
In an arbitration setting, however, rules can be structured in order to meet the needs of the parties (unlike in a court setting) as to issues of cost, time and process.
Hutchison Oss-Cech Marlatt is accustomed to utilizing both processes to maximize the benefit for our clients.
