Despite the various unconventional implications of the term “alternative,” when it comes to dispute resolution, alternative methods are often quite acceptable and popular. As you are likely aware, the traditional approach for resolving disputes through a third party is to go to court. Alternatively, if you seek a more convenient, cost-effective, and efficient dispute resolution method, you have two primary options: hiring either an arbitrator or a mediator.
While both arbitration and mediation fall under the ADR (Alternative Dispute Resolution) umbrella, they are fundamentally distinct. It is crucial to understand their differences to decide whether to engage a mediator or an arbitrator.
Arbitration: Although utilizing an arbitrator provides an alternative to going to court, the process and outcomes closely resemble a courtroom setting. In arbitration, both parties present their cases, make arguments as necessary, and then the arbitrator renders a decision to determine the winner.
An analogy for arbitration is a boxing match, where the referee declares one of the fighters the winner at the end of the competition. In this analogy, the arbitrator fulfills the role of the referee.