Difference Between an Arbitration and a Meditation

When it comes to reaching a negotiation, people prefer to go to arbitration or mediation. They are less expensive than a court hearing. The arbitration and mediation ultimately comes to an agreement between the two parties. There are some differences between an arbitration and mediation.

Differences Between An Arbitration and A Mediation

Many people get nervous at the idea of settling a dispute in court. It can be expensive and take up a lot of time. Using a mediation or arbitration can be less expensive and less time-consuming. A mediation and arbitration are informal hearings that reach agreements between two parties. There are some major differences between them.

A mediation hearing involves a third party who may or may not be a legal professional. The third party remains neutral while the two parties reach an agreement. Arbitration is usually overseen by a judge or attorney. The two parties have their sides heard and the arbitrator has the power to make a decision.

In mediation, the mediator can offer opinions but both parties must make the final decision. The opinions are not considered legally binding in mediation. In arbitration, the decisions made by the arbitrator are legally binding.