Differences Between Arbitration And Mediation - 1902 Words

Differences between Arbitration and Mediation: Arbitration occurs when a neutral third party â€Å"hears a dispute and imposes† (Miller Cross, 2013) their decision on both parties. Mediation transpires when an unbiased third party works with both sides to â€Å"facilitate a resolution† (Miller Cross, 2013). Arbitration and mediation both work to find a solution to the conflict between two parties; but arbitration differs from mediation through the role of the neutral third party, the formality of the process, the discovery period of a case, and the type of decision. In both arbitration and mediation there is an impartial third party. In arbitration, there tends to be more than one arbitrator. In arbitration, there is a â€Å"panel of multiple arbitrators† (â€Å"Mediation†, 2015), where one arbitrator is chosen by each side. Afterwards, the two arbitrators then â€Å"select a third† (â€Å"Mediation†, 2015) to complete the panel. The panelà ¢â‚¬â„¢s role in arbitration involves coming to decision after hearing parties â€Å"testify under oath† (â€Å"Comparison†, 2015) and examining the evidence presented. Unlike arbitration, mediators help both parties with the â€Å"discussion and eventual resolution† (â€Å"Mediation†, 2015) of their conflict and case. In a mediation, both parties select a mediator to help create more understanding, which tends to be a less formal process than that of an arbitration. The formality of an arbitration and a mediation varies due to their nature. An arbitration is aShow MoreRelatedConflict Management Arbitration and Mediation1006 Words   |  4 PagesConflict Management Arbitration and Mediation It is well recognized that the availability of prompt, effective and economical means of dispute resolution is an important element in the orderly growth and encouragement of international investment and trade. 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