When there are disputes that have to do with the running of a business or an employment issue, coming up with a solution is a priority. Many individuals who are in this position will turn to either mediation or arbitration to work out something with the other party.
Mediation and arbitration are alternative dispute resolution options that can help you to keep the case out of court. For most companies (and people), the prospect of avoiding a time-consuming and expensive legal battle is always attractive.
What are the differences between mediation and arbitration?
In mediation, the two parties try to work out something with the help of a neutral third-party mediator — but the parties must ultimately come to an agreement on their own. In arbitration, both sides present their case to an arbitrator or a board of arbitrators. The arbitrators or board make a determination about the outcome of the matter. Another difference is that mediation is usually non-binding, but arbitration is normally binding.
Because of the flexibility of mediation and the fact that each party has input into the outcome, many people prefer this option when they have a legal matter to handle. There may be some cases in which arbitration isn’t appropriate, so your attorney may suggest arbitration for those matters.
If you have an employment or business dispute of any sort, you should discuss the matter with your attorney. This can help you to determine what solutions might be possible. It’s also an opportunity to set your strategy moving forward. It’s best to do this as soon as you realize that there’s an issue that needs to be addressed.