Arbitration is a point of a legal process where both sides agree to submit their claim and have an impartial arbitrator resolve their disagreement. This is often confused with mediation. Indeed they are similar and they both involve a person who meets a decision, one being an arbitrator and the other being a mediator and how these processes try to resolve issues before going to court. Neither a mediator nor an arbitrator have to be a judge. Oftentimes, they are outside attorneys or a former judge. However, both processes are still very different from each other.
During arbitration, both sides agree that whatever ruling that the arbitrator issues will be final and will be binding on both parties. During mediation, the parties voluntarily decide whether to settle the matter or not to settle the matter. The mediator doesn’t act as a judge or issue a rule.
So you may be wondering, “What’s the point of arbitration? Mediation seems like less pressure.” Arbitration usually happens as a result of a more serious matter or a more serious disagreement. This is the last resort before going to trial in front of a jury or a judge. The arbitration process gets resolved faster and it’s more cost-effective than litigation while still being able to reach a binding decision. It’s almost like a middle ground between a mediation and a full-blown trial.
As always the right decision, for any case, is dependent on many factors. So talk to an attorney if you’re unsure. They may be able to guide you in the right direction. The attorneys at Malloy Law Offices are expert negotiators and strong advocates for our clients. Our team knows the ins and outs of the process and can recommend whether arbitration is the right choice for your case. Contact us today to get started.