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Mediation versus Arbitration. Which is right for you and your contract?
Mediation:
Mediation is a non-binding form of dispute resolution that works well for minor disputes. The mediator engages in shuttle diplomacy to formulate a solution that is acceptable to both sides. It has one major disadvantage. If the mediator fails to find a common ground, the dispute moves back to the litigation track. As a result, it works well for minor disputes. It doesn't work as well with intractable disputes or unreasonable parties.
Arbitration:
Arbitration is a binding form of dispute resolution. It permits parties to submit their dispute to an independent third party who functions much like a judge. The arbitrator listens to the facts and then renders a judgment. It has one drawback; the arbitration is conducted much like a trial, and isn't as conducive reaching a reasonable business compromise to a business dispute.
Binding Mediation:
Binding mediation is a melding of mediation and arbitration. It starts out with non-binding mediation. If the parties are unable to reach a mutually satisfactory compromise, it converts to binding arbitration. The mediator can continue on as the arbitrator... one who has been educated on the true needs and wants of the parties, as well as who is being reasonable and who is not. The prospect of this escalation encourages reasonableness at the mediation stage.
Call us today at our toll free line, 866-735-4912.
From our San Diego office our professional mediation and arbitration attorneys service the whole Southern California area including Los Angeles, Irvine, Orange County, the Inland Empire as well as clients World Wide.
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