difference between mediation and arbitration

Are you involved in a legal dispute? If so, you may have heard of mediation and arbitration.

Mediation and arbitration are alternative dispute resolution methods.

They offer different ways to resolve a legal conflict than through the court process. 

Perhaps you’d like to know the difference between mediation and arbitration and the potential impacts of using either method.

Understanding these differences may help you better understand whether either option is right for you. Read on to learn more about mediation and arbitration and how they may help you resolve your conflict.

What Is the Difference Between Mediation and Arbitration? 

You understand that mediation and arbitration are alternatives to court. However, you wonder, What is the difference between mediation and arbitration?

The definitions and differences between mediation vs. arbitration are explained below.

Mediation Defined

Mediation is an out-of-court process where a neutral third party, called the mediator, helps the parties to a conflict resolve their issue.

Mediation is usually voluntary, and the parties can typically select their mediator. Depending on the mediator, this can be a loosely structured process that doesn’t abide by court rules. 

Mediators are not judges or arbitrators. They lack the authority to make a final decision in the case. The mediator’s only role is to help the parties find a resolution.

They are, however, trained in conflict resolution to facilitate helpful and productive discussions between the parties. 

One of the benefits of mediation in New Mexico is that it is confidential. A mediator’s notes cannot be used in court. Nor can the parties to the mediation disclose mediation-related communications. 

Mediation has many other benefits, including being relatively affordable. However, mediation only works if the parties are able or willing to compromise.

Arbitration Defined

Arbitration also utilizes the skills of a neutral third party, known as an arbitrator. However, unlike mediations, arbitrations are formally structured, similar to formal court hearings.

An arbitrator listens to each party’s argument, examines the available evidence, and, like a judge, decides on the case. 

There are two types of arbitration—binding and non-binding arbitration. Binding arbitration means that the parties cannot appeal the arbitrator’s decision in court.

The parties must accept the arbitrator’s final decision. In non-binding arbitration, the parties can request a judicial review of the decision or a separate court trial if they do not like the arbitrator’s decision. 

The parties select and hire their arbitrator. For complex legal issues, the parties may select an arbitrator with experience in a subject matter impacting their case.

Some arbitrators work in specialized fields outside of their work as arbitrators. 

Should I Use Mediation, Arbitration, or Litigation in My Case? 

Choosing between mediation vs. arbitration vs. litigation often depends on your goals and your relationship with the opposing party.

You may use more than one of these methods depending on your situation. Below are some of the benefits and drawbacks of each option. 

Mediation

Mediation may be preferred early in the dispute process, mainly if the parties believe they may be able to reach a compromise.

Mediation is especially useful if the parties hope to save on the costs of litigation or arbitration.

Litigation and arbitration can be expensive, and resolving an issue through mediation could be significantly more cost-effective. 

Arbitration

Arbitration may be preferred over mediation if the parties cannot resolve their dispute or if the dispute involves complex subject matter.

For example, arbitration may be more appropriate in cases involving substantial money, complex financial instruments, or technological issues.

However, arbitration can be as costly as litigation, if not more. This is particularly true if you have a non-binding arbitration and pursue your case in court if you disagree with the arbitrator’s decision.

Nonetheless, some contracts require you to resolve disputes through arbitration rather than litigation.

Litigation

Litigation is the normal governmental court process with all the accompanying formalities.

The parties can utilize different discovery tools to formally gather evidence and information to better understand either side’s position.

Ultimately, if the parties do not settle their case, a judge or jury will make a decision. You may be able to appeal this decision.

Litigation can be expensive and can take a long time. In many court cases, a judge will recommend that the parties try mediation to attempt to reach a settlement before trial. 

Contact Us 

At Mesilla Legal Center, we provide professional space for you to hold your mediations and arbitrations. We can also provide space for meetings, depositions, seminars, and other events. 

We are happy to set up rooms based on your specific needs. We offer plenty of amenities, and our office spaces have high-speed wireless internet and video conferencing capabilities.

Contact the Mesilla Legal Center to book your space today! 

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