A neutral third party is always involved in both arbitration and mediation cases. In mediation, the third neutral party is the “mediator” or facilitator of negotiations. The aim is for the parties to arrive at a mutual agreement so the agreements are reached voluntarily. In arbitration, the arbitrator who is the neutral third party makes the final decision. As much discussion about disputes is involved, arbitration and mediation needs lawyers. You need the best lawyer and to be on the winning side.
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Arbitration vs. Mediation
There is only a simple difference between arbitration and mediation: just like judges, when the arbitrators hand down decisions, it can only be contested under some circumstances. In other words, if you agree to arbitration, you are bound by the ruling of the arbitrator although there are exceptional deviations from the normal procedure. In almost any arbitration, however, the party with the complaint will send the opposition a notice of their intention to use arbitration to settle the dispute together with an as a basis for the dispute. A given period for response is followed by the selection of arbitrators, and then the hearing itself.
Mediation is facilitated by a neutral third party and does not involve decision making from a third neutral party. Resolution is reached either in oral or written forms and it content varies with each type of mediation. The law in the individual’s jurisdiction determines if mediation agreement is binding depends on but most agreements reached from mediation are considered as enforceable contracts.
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