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Mediation Vs Arbitration: What's The Difference?

1 June 2023

Arthur Young

Many people assume that personal injury cases always go to court for a case to be decided in front of a judge or jury. However, that is not typically what happens when a lawsuit is filed for a personal injury case. Many cases are actually settled in mediation and arbitration, where both parties have control over the outcome of the case. Here is what you need to know about both of these alternatives to litigation.

Mediation

Mediation is a process that each party voluntarily enters, where a mediator will work with both sides to come up with a fair resolution that works for everyone. The mediator doesn't make a decision but facilitates a settlement that is mutually agreeable. This is done by encouraging compromise through open dialogue between everyone.

Many people prefer to use mediation because it is less adversarial than going to court. The atmosphere is designed to be cooperative and encourage both sides to come to a joint decision. The resolution process can also be quick and save each side a lot of money because the court costs involved with litigation will be high for everyone involved.

Mediation works by having a mediator explain the rules and set the overall tone for how each side will communicate. Each side will present their case, and the mediator will help them negotiate. The goal is to come to a decision that is mutually agreed to, which is then made into a formal document that will be legally binding.

Arbitration

The arbitration process keeps both sides out of court but still has a feel as if the process takes place in court. This is due to having a third party act as arbitrator, who will be the person that makes the final decision on the personal injury case.

What is unique about arbitration is that you can decide before the process begins if you want the arbitrator's decision to be binding or non-binding. If a decision is binding, then it will be put into writing and act as a final decision in the legal matter. If the decision is non-binding, each side can agree to what the arbitrator decided or go into litigation.

The benefit of arbitration is that it will be fast and cost less than going to trial. You don't have to wait for a court date and can get directly into arbitration when both parties are ready. You also do not have the cost associated with a trial, and the additional legal fees that are part of it.

For more information, contact a personal injury lawyer near you.

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