Disadvantages Of Mediation And Arbitration

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Mediation or Arbitration
Alternative dispute resolution mechanisms have changed the way disputes are resolved across the globe. The methods have taken disputants from courts and placed them on a pedestal where not only their dispute is resolved but also their relations mend. This process allows each party to the dispute to play an active role in the dispute resolution (Farmer, 2012). There is two main alternative dispute resolution mechanism used worldwide. These are mediation and arbitration. Gordon (2011) defines arbitration as a process where both parties to the dispute agree to have their case heard and determined before an agreed neutral party called the arbitrator. Arbitration can either be voluntary where parties agree to settle disputes through arbitration or mandatory where the decision to go to arbitration is embedded in an agreement.
On the other hand, meditation refers to an informal process where both parties agree on a third party who will help them resolve the dispute. Unlike in arbitration, the mediator does not have control over the final outcome of the process and the decision of that process is not binding on parties unless they voluntarily adopt it (McLean & Wilson, 2008). This process is not governed by formal rules. Recently, the hybrid system which is a combination of both the mediation and arbitration process was adopted as part of alternative dispute resolution method. This is arb-med mechanism a system which has picked up well in this realm.
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