Which Comes First Arbitration Or Mediation - What Is The Difference?

Mediation is an alternative for ligation,, (where the process is to head to court). Mediation is a method used to solve misunderstanding, In a dispute, a third party, known as a "mediator," is brought in to assist the parties in reaching a settlement. In many cases, the mediator may propose solutions he or she does not have authority to make a binding decision. The mediation process is private and confidential, as opposed to trials, which are public. It takes less time to mediate a dispute and with much less expensive (both parties share the cost). The greatest advantage to mediation is the high likelihood of continuing the business relationship, since the dispute has been settled with consideration of both parties The average cost for mediation can range from $600.00 up. The mediator can be a retire attorney, active attorney, a professional mediator, or judge.  The real estate guidelines are that a compliant must be filed and received by the local real estate board, as well as the real estate agent, & broker. Once the compliant has been made known, the local real estate board usually will ask if there has been any attempts at resolution. If all attempts on the part of the broker and real estate agent fail, it then off to mediation.  


Arbitration, on the other hand, is a more formal approach to alternative dispute resolution. An arbitrator is appointed with the agreement of both parties, and he or she hears both sides of the dispute. The rules of evidence differ from court trials, and attorneys may not be representing the parties. After hearing both sides, the arbitrator makes a decision; most often that decision is binding upon both parties. Like mediation, arbitration is less time-consuming and less expensive than litigation. In binding arbitration, the parties usually have no appeal option, unless an appeal has been included in an arbitration clause.  This can be pricey and depending on who is held responsible, the cost can be substantial.

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