What is the name for the resolution of a disagreement by a neutral third party?

Mediation and arbitration are both forms of alternative dispute resolution (ADR), meaning alternatives to the expensive and time-consuming litigation of a lengthy court battle. Mediation and arbitration are similar in that they bring together parties in conflict to resolve an issue outside of the courtroom, but each has its own unique way of doing so.

Mediation Brings Parties Together to Find Voluntary Solutions

Mediation is an alternative process for conflict resolution that provides a number of advantages over going to court. The parties, with or without counsel, engage a neutral third party Mediator to facilitate productive conversation between them and help each side clarify its interests and concerns. The parties retain control over the entire process, including the format of the process, who can attend the mediation, and how to resolve the dispute. Mediation is less expensive and considerably faster than a court proceeding, and can occur at any time during the pendency of the dispute. Mediation is a confidential proceeding conducted in a less intimidating environment than a courtroom. Solutions can be creative and more suited to the needs of the parties than what the court might be empowered to order.

Mediators do not make decisions or rulings. Rather, they help the parties create their own voluntary agreement in a confidential setting. The agreement, when signed by each party, is a binding contract. If a settlement cannot be reached in mediation, the parties reserve all of their options to pursue another form of ADR or take their issue to court.

Arbitration Relies on a Neutral Third Party to Determine an Outcome

Like mediation, arbitration utilizes a neutral third party, called the Arbitrator, to resolve the conflict between the parties outside of a courtroom. However, unlike mediation, the Arbitrator serves as a private judge to listen to the evidence and make rulings to determine the outcome of the dispute. Thus, in arbitration, the private judge is in control of the process and the outcome, whereas in mediation, the disputing parties maintain control.

Most Arbitrators will be flexible and work around the schedules and needs of the parties. And although arbitration is usually less formal than a courtroom trial, there will be a set of procedures that will apply to both sides as they prepare for the hearing. In most cases, the award of the Arbitrator is final and binding on both sides. The opportunity to appeal after a binding arbitration is very limited.

If you are interested in learning more about alternative dispute resolution or you believe you are involved in a situation that could be resolved through mediation, contact us online or call 303-798-2533.

When it comes down to solving a dispute, taking a case to Court can be an expensive and lengthy process. Alternative Dispute Resolution (ADR) is becoming a popular way to resolve all types of disputes and many people are turning to dispute resolution specialists to help them solve tough situations without the need to go to court.

Although some cases do ultimately have to go to court in order to obtain a favourable outcome for all parties, many other disputes can be  resolved using one or more of the following 4 forms of alternative dispute resolution.

Negotiation                                                                       

Negotiation is often the first option for those wishing to resolve a dispute. Simply because, in some cases, disputes can be solved by both parties taking a ‘cards on the table’ approach and attempting to negotiate a compromise. If required, dispute resolution specialists are able to take instructions and negotiate on behalf of the parties.

Mediation

A mediator is a jointly instructed neutral party and their role is to assist the parties in reaching an agreement.

The use of a Mediator may assist in diffusing any hostility between the parties and help to focus on the key issues, the party’s objectives and hopefully agree a solution. In certain cases, the Courts may insist that the parties attend mediation before continuing with legal proceedings and can penalise a party with a costs order against them if they refuse to do so

Arbitration

An arbitrator is a neutral third party who the parties have appointed to resolve the dispute. The arbitrator will be a specialist in the field where the dispute arises for example civil engineering.  The arbitrator will hear from both parties before making their decision. Parties can choose from a single arbitrator or a panel of arbitrators which are presided over by a chairman.

When an arbitrator has come to a final decision which is binding, the decision can be enforced by the court.

Expert determination

Parties can jointly instruct an expert to answer a specific question or issue which is in dispute. The expert will have specialist knowledge of the area which is in dispute. This produces a quick result and is generally a quick and informal process. The parties agree that the expert’s determination will  be binding which means that there are limited rights of appeal if parties do not agree with the expert.

Disputes can be a draining experience and diverts attention from moving your business forwards in a positive direction.  Our  dispute resolution specialists can help minimise the impact of disputes and help you reach a resolution in the most cost effective and time efficient way, whatever the method. If you need expert support, please get in touch with our dedicated dispute resolution team.

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