Mediation vs. Arbitration

Individually mediation and arbitration are approaches to alternative dispute resolution (ADR). Both are a solution to the costly and time-consuming litigation associated with a protracted court struggle. While mediation and arbitration are similar in that they bring parties in disagreement together outside of the courtroom to address a problem, each has its distinct method.

Arbitration is often more efficient than litigation, as it is faster, less expensive, and allows for greater process and procedural flexibility.

A third, independent party significantly improves chances of dispute resolution, such as dispute resolution boards, mediation, and private adjudication, which are widely used and recommended by experts. But these types of alternative dispute resolution do not offer any binding resolution. So, they may not resolve a dispute in the long term. The legally binding award that arbitration provides is one of its advantages.

Another distinct advantage of arbitration is the freedoms offered to parties to modify the process to meet their own needs, such as limiting discovery. Limiting discovery is one of the most attractive features of arbitration in the United States. In recent times, the temptation to drown one’s opponent in discovery has been a common occurrence. Excessive pleadings and erroneous submissions can occur in arbitration. As skilled arbitrators, we will select and manage discovery to information that is relevant to the dispute.

Mediation – Bringing parties together to reach consensual agreements

Mediation is a non-judicial method of resolving disputes that has a lot of advantages over going to court. With or without the assistance of counsel, the parties engage our Phoenix mediation lawyer as a neutral third-party mediator. This arrangement fosters fruitful communication and assists each side in defining its interests and concerns.

The parties maintain control over the process, including the format, who is permitted to participate, and how the issue is resolved. Mediation is less expensive and significantly faster than a judicial procedure, and it can take place at any point throughout the dispute’s pendency.

Mediation is a private procedure that takes place in a less intimidating setting than a courtroom. Solutions can be innovative and more suited to the parties’ demands than what the court may have the authority to mandate.

Mediators do not render judgments or make decisions. Rather than that, they assist the parties in developing their own voluntary agreement in a private context. When both parties sign the agreement, it becomes a legally enforceable contract; if a settlement cannot be achieved during mediation, the parties retain the right to seek another type of ADR or take their dispute to court.

The role of your FR Law Group Phoenix mediation lawyer

As a mediator, our primary role is to enable communication between parties in dispute to help them reach a negotiated resolution. Our goal in mediation is to bring both parties together by listening to both sides and every position.

We look for a resolution where both sides walk away with a share of the overall win. In addition, our extensive courtroom trial experience gives us insight into a reasonable agreement. We can provide perspective on what outcome might be reached should the case go to trial.

Arbitration in Arizona

The American Bar Association defines arbitration as “a private process where disputing parties agree that one or several individuals can make a decision about the dispute after receiving evidence and hearing arguments.”

Arbitration is most frequently used when a civil legal dispute develops between two or more parties who have entered into a contract – and the parties agreed when they entered into the contract that any future disagreement would be settled via arbitration.

An “arbitration clause” – a contract provision requiring the parties to resolve their differences through arbitration – is a typical aspect in commercial contracts, labor contracts, and consumer contracts. Individuals involved in any type of civil legal issue, on the other hand, can always agree in writing – at any moment – to resolve it through arbitration rather than litigation.

Arbitration is commonly utilized in both the private and governmental sectors to resolve disputes. Similar to a trial, the arbitration procedure begins with the parties making opening statements and presenting evidence to the arbitrator. In comparison to regular trials, arbitration is typically more expedient and less formal.

Frequently, the parties are not obligated to follow state or federal standards of evidence, and the arbitrator is not required to use the controlling law in such situations. Unless a party seeks to enforce the arbitrator’s final judgment in court, the arbitrator’s final decision is secret.

As arbitrators in Arizona, we rule on the merits of the matter and don’t default to “splitting the baby.” We understand that parties often enter into arbitration agreements to avoid the expense and delay associated with the judicial system. Our objective is to give each party involved the opportunity to share their perspective and then reach the dispute’s merits in an efficient and timely manner.

Arbitration Relies on the Determination of an Outcome by a Neutral Third Party

As with mediation, arbitration involves using a neutral third person, referred to as the arbitrator, to resolve the parties’ issue outside of a courtroom. However, unlike mediation, the arbitrator acts as a private court, listening to the evidence and issuing judgments to resolve the disagreement. They are the ones who make the decisions.

With FR Law Group, we will ensure that the arbitration procedures are followed. Our arbitrator will preside over the hearing, including testimony, the receipt and consideration of the evidence, and an evaluation of the arguments of all contesting parties. Acting as private judges, they control the process and conclusion in arbitration. Unlike mediation with a nonbinding resolution, you get an arbitration award that’s legally binding for both sides and enforceable in the courts.

Our arbitrators will be accommodating and work with the parties’ schedules and demands. And, while arbitration is often less formal than a courtroom trial, both parties will be subject to a series of processes as they prepare for the hearing. In most circumstances, the arbitrator’s decision is final and binding on both parties. After a binding arbitration, the right to appeal is quite limited.

Contact FR Law Group

Please contact us if you want further information about our Mediator/Arbitrator Neutral services or if you require assistance determining which of our services is best suited for your issue. Contact FR Law Group to schedule an initial consultation regarding any business-related alternative dispute resolution issue or call (602) 566-7425.

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