The Difference Between Mediation and Arbitration

All cases in litigation are controlled by the judge who gives the order to allow mediation. The mediator has no authority in making a decision as to who wins or who loses.

According to California law, if the mediation is not successful, none of the communications between the three parties can be used in court. During litigation, all court discussions are part of the public record and that is one of the reasons why some litigants settle in mediation to keep matters private.

The Process of Mediation

The meeting is opened by the mediator who tells the parties involved who he is and what he wants to help them to achieve. The parties involved in the lawsuit are made aware that they are involved in mediation and that it is entirely voluntary and neither party is obligated to accept any offers by the other side.

What Part Does The Mediator Play?

The mediator acts as an objective listener and conveyor of issues that are causing the two parties to be involved in litigation.

The mediator is not the judge and can not decide who is right and who is wrong. If a settlement is reached, the mediator can help the two sides to draft a settlement agreement. If that happens the settlement is final and the litigants are obligated to its terms and conditions.

Should The Mediation Fail What Happens Next?

If mediation fails, the two sides can file a lawsuit and the judge decides.

How Much Does a Mediator Cost?

If mediation is court ordered, fees are paid by the court. If mediation was initiated by either of the two parties or counsel, a mediator can charge from $100 to $500 an hour, or as in the case of personal injury attorneys, they may collect a percentage of the sum won in the trial.

The Process of Arbitration

The process of arbitration or ADR which stands for alternative dispute resolution, litigants or counsel choose a retired judge or counsel to hold an arbitration meeting. In arbitration, both sides can produce witnesses and testimony can be taken once they are sworn in by the Arbitrator. Although similar to a court hearing, the meeting is less formal and can proceed more quickly.

Who Benefits From Arbitration?

In arbitration, the benefits come from saving the court time and money by limiting the scope of discovery to the litigants who also get to control what evidence will be admitted and what monetary settlements they are willing to reach by providing a cap. The court also benefits as an arbitrator is paid similarly to a mediator.

What Cases Can Be Heard By Arbitration?

All cases that are involved in litigation of a civil nature can be heard by arbitration. The parties involved agree to the final disputation of the case by the arbitrator as binding or non -binding. If the parties agree to a binding arbitration, the decision of the arbitrator is final and neither side can appeal in court. If the arbitration is non-binding, the decision of the arbitrator can be appealed by either side.