What is Arbitration? What Are the Differences Between Arbitration and Mediation?

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Arbitration is a process where parties present their arguments in a hearing format to an arbitrator who writes the decision. By going to arbitration, they have given the decision-making power to the arbitrator, who acts as a judge.

The arbitration hearing is much more informal than court. Arbitration can either be binding or nonbinding. Labor/management arbitration is binding, which means that the decision cannot be appealed or overturned unless the arbitrator showed bias, discrimination, or fraud in his decision. The courts have long recognized that labor arbitrators have a specialized knowledge of labor law that judges generally do not have.

An arbitration that is not biding means that the parties can reject the decision. The parties have the option of going to court or even to another arbitrator. The non-binding decision is an independent assessment of the case and may be used in settlement later on. The parties may not take a non-binding arbitration seriously if they have the power to reject the decision. The parties need to look at how much they are willing to spend and how important the final resolution is to them before deciding how to proceed.

What Are The Differences Between Mediation And Arbitration?

Mediation: The parties agree to work with a facilitator or mediator to resolve a dispute.

Arbitration: Parties agree to present their arguments to an arbitrator for a ruling.

Mediation: The parties control the outcome.

Arbitration: The parties do not control the outcome.

Mediation: The mediator does not make a decision.

Arbitration: The arbitrator makes a decision.

Mediation: The mediator asks questions so he can help facilitate a settlement by the parties.

Arbitration: The arbitrator asks questions in order to make a ruling.

Mediation: The decision-making power is retained by the parties.

Arbitration: The arbitrator weighs the evidence and makes a decision.

Mediation: The mediator is neutral, ethical, and has no vested interest in the proceeding

Arbitration: The arbitrator is neutral, ethical and has no vested interest in the proceeding.

Mary Greenwood, Attorney Mediator, and Author of How To Mediate Like A Pro, 42 Rules for Mediating Disputes (Published Feb.2008)
How to Negotiate like a Pro, 41 Rules for Resolving Disputes
Available at http://www.amazon.com
Visit http://www.Marygreenwood.com
Email: Howtomediate@aol.com
DIY Award 2006, Los Angeles, California, Best “How To” book
Finalist ForeWard Magazine, Book of the Year Award
Finalist USA Book Awards, Self-Help Category

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One Response to “What is Arbitration? What Are the Differences Between Arbitration and Mediation?”

  1. good analysis. i think we’re on the same boat.
    :)

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