Have a legal problem? Going to court isn’t the only answer. In New York City Arbitration and Mediation are both categorized under the legal term Alternate Dispute Resolution (ADR). This refers to any means of settling a dispute outside of the courtroom.
Mediation broadly refers to any instance in which a third party helps others reach agreement. Mediation brings both sides of a dispute together with a professional, who helps the parties to work out an agreeable solution or compromise that both parties either accept or reject. The mediator is more a facilitator who assists in developing options and achieving a mutually agreed resolution. He does not make a decision for the parties.
Arbitration is a simplified version of a trial. It is an alternative means of settling a dispute by impartial persons without proceeding to a court trial. In arbitration, either both sides agree on one arbitrator or each side selects one arbitrator and the two arbitrators elect the third to comprise a panel. The arbitrator is a judge of the dispute and provides resolution measures which is binding on the parties. Unlike mediation, an arbitrator’s judgment is considered final and binding.