Mediation is usually a voluntary process, which will take place if all parties agree. However, under certain circumstances statutes, rules, or court orders may require participation in a mediation. Mediation is an informal process which involves an independent third party, a mediator, who helps the parties come to an agreement. The role of a mediator is to help parties reach a resolution to their problem(s) and to arrive at an outcome that the parties agree to accept.
Mediation is a confidential process where the terms of the discussions are not disclosed to any parties outside the mediation. If the parties are unable to reach an agreement, they can still go to court.
Arbitration comes about when the parties agree to it. Agreements to arbitrate are generally reduced to a written contract agreed to by the parties. The arbitration process involves many of the same components of a courtroom trial. For instance, evidence is presented, arguments are made, witnesses are called to testy and are questioned by the parties, and so forth. However, many of these aspects are simplified or limited so as to make the process faster.
After an arbitration hearing (trial), an arbitrator will usually deliver a ruling during a specified time period. Under most circumstances, the arbitration ruling is final and may not be appealed. Another unique aspect of arbitration is that the proceedings are typically not public record. For individuals and businesses who seek to resolve their disputes quickly and keep the details private, these considerations may be valuable.
