California Arbitration vs. Mediation: Understanding the Difference

If you’re in the process of looking for a conflict resolution method, you probably have a few questions. Those unfamiliar with the field of law or conflict resolution in general may be unclear as to what each different method really means, especially when it comes down to arbitration and mediation. We want to help explain the difference!

First off, let’s look at what makes these two methods similar so we can better understand their differences. They both serve to help you, your company or any others involved avoid hefty costs and time spent in the courtroom, which is—as you probably already have guessed—helpful when it comes down to time sensitive issues. But each form does have its own key characteristics.

Mediation is often known as being a first step to the trial process, but this isn’t always the case. While you may find that your issues cannot be resolved in mediation alone (and, thus, must enlist the help of a lawyer and the court), sometimes parties partake in mandatory pre-trial mediation and avoid going to court entirely because they are able to find a solution in less time. Another important aspect of mediation is that it is typically nonbinding (although some forms, like Med-Arb, are in fact binding), meaning that decisions made in mediation won’t be enforced if one or both parties dislike the solution. A mediator’s main goal is to help you and the other party discuss the issues at hand and voice ideas or concerns—in other words, they facilitate discussion on your conflict in a controlled, safe space, and want you to help with arriving at a decision.

In arbitration, you also enlist the help of a neutral third party—in this case, the arbitrator. While the arbitrator also listens to each side and takes note of each’s ideas, concerns and questions, an arbitration typically results in a binding decision made by the arbitrator. (Again, there are exceptions—you can partake in a nonbinding arbitration, which results in an arbitrated decision that is not enforceable by law.) Baseball arbitration and high/low arbitration are special forms of arbitration that focus especially on what each party thinks is a fair number or decision, so you can look into these as well.

So which form of resolution is right for you? Ultimately, the decision depends on several factors and should not be made in a snap—but there are a few things to consider that may help. Have you and the other party or parties tried to resolve the same issue before, either in mediation or in a more informal way? Mediation is often a great option for parties who, while disputing, can still amicably work out an issue in a calm, composed way—but if experience says that you can’t come to group decisions in such a way, you might want to seek out the help of an arbitrator who effectively makes the decisions for you (of course, after hearing from both sides). Arbitration resembles litigation is some ways, but it is still a cost-effective and less time-consuming way to come to a decision.

You probably still have several questions regarding the various forms of conflict resolution. Don’t hesitate to give us a call so we can help you find the form that is best for you!