What is the difference between business mediation or arbitration?  Both of these are vehicles for resolving legal or business disputes, but which is better – mediation or arbitration for resolving a lawsuit or disagreement quickly and cost-effectively?

Business Mediation

Each has its strengths and each has its drawbacks.  Business mediation is an effective tool for those who may have limited disagreement, or contentious disagreement but on a focused issue.  The advantage of mediation is its relative affordability (when compared to arbitration) and the influence the parties retain throughout the process.

In mediation, the parties agree upon a neutral third party – the mediator – who guides the conversation during the mediation.  The mediator should have deep experience and expertise in the matter at hand as well as a skill set that fosters effective negotiations.

The mediator will work to help clarify the issues, and the initial positions of each party so that everyone begins with roughly the same understanding.  The mediator will then work to find common ground, applying their own knowledge and making recommendations regarding potential solutions.  The parties are quite active in these conversations and have a substantial opportunity to have input into and influence over the proceedings.

The mediation may resolve part or all of the dispute at hand.  The goal of business mediation is a settlement agreement.  Mediation is usually substantially less expensive than arbitration and the recommendations of the mediator are not binding.

Arbitration

What is the biggest difference between business mediation or arbitration?  Arbitration is going to bring an end to the dispute.

Arbitration shares a few aspects in common with mediation.  The parties agree upon a neutral third party – the arbiter – who has a depth of expertise on the issues at hand as well as a comprehensive understanding of the laws that govern related disputes.  The arbitration is a much more reserved and focused proceeding, where there is a lot more structure and the rules are quite rigid.

The arbitration often begins with attorneys for both sides submitting briefs.  The arbiter may then interview the parties, take testimony from appropriate witnesses and marshal important evidence.  The arbiter will decide the outcome of the case based upon their deep experience in associated matters and their thorough understanding of the law.

The ruling of the arbiter cannot be appealed unless there is outright fraud or collusion.  The advantage of arbitration lies in the compression of time related to the events and gathering of evidence, as well as the assurance that a decision will be reached.  Arbitration is usually much less expensive than trial in a Court of law.

The Difference Between Business Mediation or Arbitration is Substantial – The Quality of Your Attorney Will Make a Substantial Impact on the Outcome of Your Case

In summary, it is important to consider all costs associated with a dispute while searching for the most effective route to resolve a business lawsuit quickly and cost-effectively.  In some cases a full trial is the only way to protect your interests and accomplish your objectives.

The difference between business mediation or arbitration is substantial in both the structure of the process as well as the outcome.  The quality of your attorney will make a substantial impact on the outcome of your case.

The attorneys at the Watkins Firm have more than 40 years of proven, successful experience in both mediation and arbitration.  We are uniquely positioned to represent you at each stage of a business dispute or lawsuit: Negotiation, Mediation, Arbitration and Litigation.

Will business mediation or arbitration be the best alternative for your unique circumstances?  We represent your interests consistently and aggressively throughout, focused upon your goals and objectives for the dispute.

If you are involved in a business dispute we invite you to review our podcast Episode 11 – Resolving Business Disputes as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.