Compare And Contrast Arbitration And Mediation

Mediation and arbitration are types of alternative dispute resolution where parties to a dispute get to resolve their dispute without necessarily taking the matter to a court of law. Mediation is a process whereby an independent third party known as a mediator assists parties in a dispute identify the issues under dispute, help them develop options and consider alternatives to try and reach an agreement. Arbitration is also a process of resolving disputes outside the courts whereby the parties to a dispute refer to one or more neutral third party by whose decision they agree to be bound. On the other hand, litigation is the process of resolving disputes by filing a complaint through the public court system. This paper intends to compare and

Arbitration is generally conducted by a panel of multiple arbitrators who take up the role of a judge, make decisions after going through the evidence provided and give written opinions which could be binding or non-binding. Mediation on the other hand has only one mediator who does not judge the case but only helps facilitate the discussion and the solution to the dispute. Litigation on the other hand involves a judge who is appointed by the court to determine the outcome based on the law and legal precedent and does not need to consult with any party.

The ADR processes are usually informal, less structured and flexible whereas litigation is a formalized process which is highly structured.

With arbitration and mediation, the parties get to choose a neutral third party whom they both trust but in for litigation no party can choose the judge who presides and decides the case. The judge is appointed by the court to determine the outcome of the case. With mediation, parties get to choose a third party who has specialized in that particular dispute.

With both arbitration and mediation, parties actively participate in the process. ADRs also allow for direct communication between participants in a non-confrontational setting in order to identify the issue causing the dispute. However in litigation, communication and participation usually occurs through

The ADR processes also allow for a custom made win-win outcome for all or part of the issues while a litigation process may result in an all or nothing decision.

Arbitration and mediation allows for the preservation of business relationships.

Mediation or arbitration aims to determine the parties’ interests while litigation aims to determine the parties’ legal rights. The two ADR processes allow for voluntary participation except an arbitrator has been appointed by the court and a party can withdraw from the process at any stage. Litigation however calls for mandatory participation once legal action is initiated.

In conclusion, arbitration and mediation are very similar both in structure and in their execution and their advantages way surpasses the advantages of litigation. Litigation is quite expensive, time consuming and unpredictable and has therefore become so inefficient for most people and so arbitration and mediation have become increasingly popular since they are cheaper and affordable, take lesser time and allows participation for all parties