What is mediation and arbitration?

Mediation is a process in which people who have disagreements work to settle their dispute with the assistance of a trained, neutral, third party. Mediators do not issue orders, find fault, or make determinations. Instead, mediators help parties to reach a settlement by assisting with communications, obtaining relevant information, and developing options.

How Mediation Works

Mediation sessions are usually held outside the courthouse, often in the mediator's office. Although mediation procedures can vary, generally the parties first meet with the mediator informally to explain their views of the dispute. Usually the mediator will meet with each party separately. The mediator discusses the dispute with them, and explores possible ways to resolve it. It is common for the mediator to go back and forth between sides a number of times. Most disputes will be resolved, and often the parties will then enter into a written settlement agreement, which is a binding contract.

Many people report a higher degree of satisfaction with mediation than with court decisions, because they control the result and be part of the solution. Settlements agreed to by both parties are much more likely to be complied with by both sides. Under Washington law, everything said at a mediation session is confidential and cannot be used later if the dispute is not settled. Thus, you have little to lose by trying mediation.

Arbitration

In an arbitration, disputing parties take their argument to a neutral third party, the arbitrator, for a binding decision. The arbitrator listens to witnesses and reviews documents before making a ruling. Under Washington law RCW 7.04, the arbitrator's award is final and binding and may be enforced like a court judgment. There is generally no appeal from an arbitrator's award.

How Arbitration Works

Usually, the parties agree to follow the arbitration rules of an agency. These rules define how an arbitrator will be selected, how the case will proceed, and what fees are involved. The parties also must sign a written contract to arbitrate that defines what the arbitrator is to decide, and selects an arbitrator (arbitrators may be attorneys or non-attorneys, depending on the case). After that, an arbitration hearing is held, often in the arbitrator's office. Each side presents witnesses and other evidence, and is allowed to question the other side's witnesses. Then the arbitrator renders a decision. Most people find arbitration less costly, faster and less stressful than a formal trial.

Differences between Arbitration and Mediation

The main difference between arbitration and mediation is that in an arbitration the arbitrator hears evidence and makes a decision. An arbitration is more similar to court to the extent parties still provide testimony and give evidence similar to a trial but the rules and procedures are less formal. In mediation, the process involves negotiation with the assistance of a neutral third party. The parties do not reach a solution unless all sides agree.