These are forms of alternative dispute resolution. Instead of going to court, you might try to reach an agreement or settlement with the other party by way of mediation or arbitration.
Both parties pay half to procure a mediator or arbitrators.
A mediator listens to both parties privately at an agreed location. The mediator may go back and forth between parties in order to broker an agreement to resolve the dispute. Recommendations made by this form of dispute resolution are typically non-binding.
An arbitrator or up to 3 arbitrators in a panel can hear testimony from each side which can be recorded by a court reporter. Each side can make opening and closing statements. Each side can be cross-examined.
Arbitration is governed by state and federal law. Awards by Arbitration are given the same force an effect as a judgement from court.
Recommendations made by this form of dispute resolution can be binding or non-binding. If the parties agree to a binding arbitration the decision will be final and can not be appealed.
Mediation and Arbitration
- eHow – Chris M. Martin
- Mediate.com – Leslie Grant