Whether mediation or arbitration is best for settling disagreements depends on the circumstances.
An arbitrator is basically a private judge who rules on the dispute after listening to each party state his or her case. In contrast, a mediator does not mandate a solution. Instead, the mediator is a third-party neutral who helps the parties come to their own mutually acceptable agreement.
Because the parties in mediation may not be able to find a “solution”, arbitration is the more certain way to bring finality to the process. However, parties in an arbitration lose control over the process and the outcome, whereas parties in a mediation get more control over both the process and outcome.
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Arbitration tends to work best when the crux of the dispute is over facts or legal issues. Mediation works best with problems, and places an emphasis on creative solutions. Mediation focuses on moving to a creative solution rather than finger-pointing and fault-finding.
Arbitration feels like a “legal” process whereas mediation is more relaxed and flexible.
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Both mediation and arbitration are private sessions in which the participants agree to keep the discussions private.
Arbitration can be binding or non-binding. Binding arbitration results in a decision that typically can’t be appealed. Non-binding arbitration results in an advisory opinion.
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Bonnie Wittenburg, Wittenburg Law Office, PLLC, 601 Carlson Parkway, Suite 1050, Minnetonka, MN 55305 952-649-9771 bonnie@bwittenburglaw.com www.bwittenburglaw.com
