Arbitration & Dispute Resolution

  • Arbitration often involves a binding agreement and occurs when an arbitrator, often a lawyer, applies law and facts to the case resulting in a reward or solution. 
  • Mediation, which is non-binding, involves a mediator assisting both parties with communication, in hopes of coming to a shared agreement.
  • Mediation is often used when one or more parties want to preserve the relationship, especially between business partners.

Source: Arbitration vs. Mediation (Pepperdine, 2022)

There are pros and cons to both mediation and arbitration – your situation and desired outcome will determine which alternative dispute resolution is best for you.

Mediation and conflict resolution are wonderful options for business disagreements with two parties who still wish to remain friends, partners, and will perhaps work together in the future. Mediators are neutral third parties, and mediations are often not binding.

Alternative dispute resolution refers to the methods of dispute resolution that do not escalate to court. Unlike mediation, which often results in an agreement, arbitration usually involves coming to a reward or decision of some sort at the end of resolution. Arbitrators are often lawyers, and the agreements made during arbitration are usually binding.

Arbitration and mediation are affected by the world around them, from current court cases to COVID-19. Just like in every other field, mediators and arbitrators had to turn virtual, which both highlighted issues and made way for new and innovative means of alternative dispute resolution.

See References for more information.