Mediation vs. Arbitration — What's the Difference?
By Tayyaba Rehman — Updated on October 2, 2023
Mediation involves a neutral third party facilitating a resolution between disputing parties. Arbitration involves a third party making a binding decision after hearing both sides.
Difference Between Mediation and Arbitration
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Key Differences
Mediation and Arbitration are alternative dispute resolution methods. While Mediation involves a mediator assisting parties to reach a mutual agreement, Arbitration has an arbitrator deciding the outcome, much like a private judge.
In Mediation, the mediator doesn't impose a solution but rather facilitates communication to help parties find common ground. Conversely, in Arbitration, the arbitrator reviews evidence, hears arguments, and then provides a decision which is typically binding.
Mediation usually promotes a collaborative environment, focusing on preserving relationships. It's often chosen for disputes that benefit from preserving relationships, such as family or workplace issues. Arbitration, on the other hand, tends to be more formal and resembles a court process, suitable for contractual or commercial disputes.
Confidentiality varies between the two. Mediation discussions are private and cannot be used later in legal proceedings. In Arbitration, while the process is confidential, the arbitrator's decision could become public, especially if enforcement through courts becomes necessary.
Lastly, while decisions made during Mediation are voluntary and need both parties' agreement to be binding, decisions from Arbitration are typically final and enforceable, with limited scope for appeal.
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Nature
Facilitative
Adjudicative
Outcome
Mutual agreement
Binding decision by an arbitrator
Formality
Less formal
More formal, similar to a court trial
Confidentiality
Entirely private, not admissible in court
Process is private, but decisions can be public
Scope for appeal
Decisions are voluntary, can be revised
Decisions are typically final with limited grounds for appeal
Compare with Definitions
Mediation
A process wherein a neutral party helps disputing individuals or groups find common ground.
Through mediation, the couple amicably settled their differences.
Arbitration
A formal process wherein a neutral third party determines a dispute's resolution.
The contract specified any disagreements would be settled through arbitration.
Mediation
An approach focused on mutual understanding and agreement.
Mediation allowed both parties to voice their concerns and find middle ground.
Arbitration
A private form of judgment deriving from an agreed-upon individual or panel.
Their arbitration decision was kept confidential from the public.
Mediation
A facilitative process aiming to promote open communication.
Mediation encourages dialogue and active listening.
Arbitration
A method where disputing parties present their case to an arbitrator for a decision.
Arbitration provides a quicker path to resolution than traditional courts.
Mediation
Mediation is a structured, interactive process where an impartial third party assists disputing parties in resolving conflict through the use of specialized communication and negotiation techniques. All participants in mediation are encouraged to actively participate in the process.
Arbitration
An alternative to court litigation, often binding in nature.
The two companies chose arbitration over a lengthy court trial.
Mediation
To resolve or settle (differences) by working with all the conflicting parties
Mediate a labor-management dispute.
Arbitration
An adjudicative approach to dispute resolution outside the judiciary.
Many industries prefer arbitration for its efficiency and expertise.
Mediation
To bring about (a settlement, for example) by working with all the conflicting parties.
Arbitration
Arbitration, a form of alternative dispute resolution (ADR), is a way to resolve disputes outside the judiciary courts. The dispute will be decided by one or more persons (the 'arbitrators', 'arbiters' or 'arbitral tribunal'), which renders the 'arbitration award'.
Mediation
To effect or convey as an intermediate agent or mechanism
Chemicals that mediate inflammation.
Arbitration
The use of an arbitrator to settle a dispute
Tayside Regional Council called for arbitration to settle the dispute
Binding arbitration
Mediation
(Physics) To convey (a force) between subatomic particles.
Arbitration
The process by which the parties to a dispute submit their differences to the judgment of an impartial person or group appointed by mutual consent or statutory provision.
Mediation
To work with two or more disputants in order to bring about an agreement, settlement, or compromise.
Arbitration
The act or process of arbitrating.
Mediation
To settle or reconcile differences
"[George] Eliot's effort to mediate between the conflicting demands of representation and readability in the [novel's] dialect usage" (Carol A. Martin).
Arbitration
A process through which two or more parties use an arbitrator or arbiter in order to resolve a dispute.
Mediation
To have a relation to two differing persons, groups, or things
Psychological processes that mediate between stimulus and response.
Arbitration
In general, a form of justice where both parties designate a person whose ruling they will accept formally. More specifically in Market Anarchist (market anarchy) theory, arbitration designates the process by which two agencies pre-negotiate a set of common rules in anticipation of cases where a customer from each agency is involved in a dispute.
Mediation
Acting through, involving, or dependent on an intervening agency.
Arbitration
The hearing and determination of a cause between parties in controversy, by a person or persons chosen by the parties.
Mediation
Being in a middle position.
Arbitration
(law) the hearing and determination of a dispute by an impartial referee agreed to by both parties (often used to settle disputes between labor and management)
Mediation
Negotiation to resolve differences conducted by an impartial party.
Arbitration
The act of deciding as an arbiter; giving authoritative judgment;
They submitted their disagreement to arbitration
Mediation
The act of intervening for the purpose of bringing about a settlement.
Mediation
(Gallicism) heritage interpretation
Mediation
The act of mediating; action or relation of anything interposed; action as a necessary condition, means, or instrument; interposition; intervention.
The soul [acts] by the mediation of these passions.
Mediation
Hence, specifically, agency between parties at variance, with a view to reconcile them; entreaty for another; intercession.
Mediation
Negotiation to resolve differences conducted by some impartial party
Mediation
The act of mediating
Mediation
A method of resolving disputes outside traditional court systems.
The company prefers mediation to avoid costly legal battles.
Mediation
An alternative dispute resolution technique promoting collaboration.
Many contracts now include a clause suggesting mediation before litigation.
Common Curiosities
Can you appeal an arbitrator's decision?
In arbitration, appeal opportunities are limited and specific, unlike traditional court rulings.
What's the key difference between mediation and arbitration?
While mediation focuses on mutual agreement with a facilitator, arbitration involves a decision made by an arbitrator.
Who usually pays for the costs in these processes?
Both mediation and arbitration costs are typically shared by the disputing parties, but specifics might be dictated by agreements or rules.
Which is more formal, mediation or arbitration?
Arbitration is generally more formal, resembling a court trial, while mediation is less structured.
Is the outcome of mediation legally binding?
Mediation results in a voluntary agreement, which, if formalized in writing, can be enforceable. Arbitration, however, typically yields binding outcomes.
Are mediation discussions admissible in court?
No, mediation discussions are confidential and typically not admissible in later legal proceedings.
Is arbitration similar to a court trial?
Arbitration resembles a court trial but is less formal and typically more expedited.
Do I need an agreement beforehand to use these processes?
Not necessarily. While many use pre-existing agreements, parties can opt for mediation or arbitration even after a dispute arises.
Can lawyers be present in both processes?
Yes, parties can have legal representation in both mediation and arbitration.
Which process is quicker?
While both are generally faster than court litigation, mediation can be quicker as it doesn't need a formal evidence review like arbitration.
What happens if parties don't reach an agreement in mediation?
If mediation doesn't result in a resolution, parties can pursue other methods, including arbitration or litigation.
How is the mediator or arbitrator chosen?
For both mediation and arbitration, parties can mutually select a neutral individual, or rely on agencies or associations that provide such services.
Can arbitration decisions be enforced internationally?
Yes, thanks to certain conventions like the New York Convention, many arbitration decisions can be enforced internationally.
Which is more confidential, mediation or arbitration?
Both processes are private, but arbitration decisions might become public if court enforcement is sought.
Can mediators provide legal advice?
No, mediators facilitate discussions without taking sides or offering legal counsel.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
