The basis of this assignment is to explain the differences and similarities between two resolution techniques. The following will explain the aforementioned qualities of mediation and arbitration. Essentially, mediation is voluntary and involves good faith of all parties involved. A neutral third party decides arbitration where a decision is reached in favor of one party or another. I do not have a preference for either although both are preferable before litigation.
When/Why Do Parties Need Either Mediation or Arbitration?
Mediation or arbitration usually occur when there is a disagreement or dispute between two parties. Sometimes, mediation or arbitration is the next step in working towards a resolution for the issue at hand. Mediation and arbitration are somewhat similar, yet have distinct differences that make either more favorable in specific situations. Both are favorable to litigation, where the matter is taken to court. Litigation is more costly, time consuming, and unpredictable (FindLaw, n/a).
Mediation is a “voluntary dispute resolution process” and all of the participating parties must agree to participate in “good faith” and work toward a solution or resolution (National Arbitration Forum, 2014). The parties in the mediation are do not have to come to a resolution. Mediations are not "decided" in favor of one party or another; rather, the mediator simply facilitates the negotiation process” (National Arbitration Forum, 2014, para.1). In my personal opinion, I believe mediation works well for parties where compromise seems like a viable solution. Parties that are unwilling to compromise at all most likely would not get much from mediation. The results are not binding, nor does the third party reach a solution in favor of a party.
Arbitration is similar to mediation in the sense that there is a third party observing and passing judgment, but the biggest difference is that while mediation can be binding, arbitration is almost always employed as a binding process (FindLaw, n/a). This distinction makes arbitration more similar to litigation that mediation is to litigation. Arbitration is private, but similar to litigation, however arbitration is not taken to court. In arbitration, if it is agreed the decision will be a “binding arbitration” “the decision of the arbitrators, called an Award, is enforceable in a court of law if the losing party does not comply with the terms of the Award” (Soskin, 2014, para. 8). I believe that arbitration is more appropriate in a situation where both parties need either a binding decision or are not willing to reach an amicable…