Arbitration and mediation are different forms of Alternative Dispute Resolution (ADR) processes. Disputing parties can use both processes to resolve disputes without going through the usual time and money-consuming court processes in seeking relief through damages or other means. These processes are used to resolve issues that border on civil matters, such as commercial disputes and contractual breaches. Mediators and arbitrators cannot handle criminal matters as it falls exclusively under what only the court can handle. They are similar in that they resolve disputes outside court proceedings, but both have their peculiarities.

1. Joseph Lee Levinson

2. Arbitration and mediation are different forms of Alternative
Dispute Resolution (ADR) processes. Disputing parties can use
both processes to resolve disputes without going through the
usual time and money-consuming court processes in seeking
relief through damages or other means. These processes are used
to resolve issues that border on civil matters, such as commercial
disputes and contractual breaches. Mediators and arbitrators
cannot handle criminal matters as it falls exclusively under what
only the court can handle. They are similar in that they resolve
disputes outside court proceedings, but both have their
peculiarities.

3. Mediation is an ADR process involving resolving a dispute through
negotiation between parties to reach a compromise. A mediation
process is usually spearheaded by an impartial and independent
third party referred to as the “mediator.” The mediator helps both
parties identify the central problems the parties should resolve
and suggests alternatives or agreeable options that can help in
the conflict resolution. Depending on the circumstance, mediation
agreements can be brought into effect voluntarily, through a
dispute resolution clause in an already established agreement, or
by court order.

4. Generally, in mediations processes, the disputants are usually
physically separated. So, they both sit in two different rooms
while the mediator addresses both parties intermittently, asking
questions. The mediator is an independent third party that can
provide innovative solutions to consider, which parties may not
have pondered before the mediation process. However, the
mediator will not advise, make decisions, or pick sides apart from
suggesting practicable solutions.

5. Depending on the gravity of the civil matter, a mediator may be a
retired judge or senior legal practitioner. Mediation holds within a
day, but it can be adjourned if it’s clear that the parties would
reach a compromise by the next meeting. Mediation is cost-
effective, confidential, and the disputants can offer creative
solutions the other party can provide, which may be non-
monetary. An arbitration agreement is binding when signed by the
disputing parties. Suppose a mediation process does not resolve a
dispute. In that case, the parties can use other ADR processes or
take their matters to court.

6. On the other hand, arbitration is a conflict resolution process
involving an independent adjudicator deciding an issue based on
evidence provided by disputing parties. Arbitration is similar to
court proceedings in the resolution procedure, but it’s done
outside the court. Unlike mediation, arbitration mainly holds if an
agreement or contract relied on has a dispute resolution clause.

7. Parties can voluntarily offer to use an arbitration process to
resolve an issue in some situations. Also, disputing parties have
to choose their arbitrator. If they can’t, they can agree on an
independent body to choose a suitable arbitrator on their behalf.
Arbitration processes are more formal compared to mediation
agreements. For example, arbitration involves a hearing, and the
arbitrator can cross-examine parties. Pre-trial processes like
pleadings and preparation of evidence and witness statements are
also existent in arbitration processes.

8. Arbitrators are usual veteran legal practitioners that are experts in
the subject matter concerning the dispute. An advantage of an
arbitration process is that, unlike mediation, there is always a
decision. Also, the process remains highly flexible and can be
determined by the involved parties. Lastly, similar to mediation,
arbitration offers confidentiality.