Mediation or Arbitration?

Mediation & Arbitration

Similarities & Differences

Mediation

·     Expanded or accelerated negotiation
·     No settlement imposed upon parties – Mediator has no power to decide
·     Parties retain control of outcome
·     Role of mediator is to aid in identification of issues, clarify interests, explore alternatives, generate options, facilitate negotiations
·     Parties able to vent feelings, tell story, engage in creative problem-solving
·     Joint & private meetings
·     Decision based on perceptions of parties, strategies and timing
·     Result is often a mutually satisfactory resolution – relationship (if any) may be maintained or created
·     Flexible – can resolve entire matter or portion
·     Low cost and cost effective
·     Private & Confidential
·     Uses professional neutral
·     May be accessed independently at time of dispute, by contract provision, or by order of court.

Arbitration

·    Adjudication
·    Final & (usually)binding decision – Arbitrator is given power to decide
·    Parties relinquish control of outcome
·    Role of arbitrator is to listen to facts and evidence, and render an award
·    Parties may present case, testify under oath
·    Evidentiary hearings
·    Decision based on facts, evidence, and law – the record
·    Result is a win/lose award – valuable where outside decision-making is desired or needed
·    Structured – parties generally decide what issues are to be heard – unless contractual
·    Often more expensive than mediation but less than traditional litigation
·    Private
·    Uses professional neutral
·    May be accessed independently at time of dispute, by contract provision, or by order of court.

 

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3605 Katy Freeway

Suite 205

Houston, Texas 77007

Phone:  713-863-9966

Fax:  713-863-8787