In mediation, a third party actively participates in a legal dispute to help settle it. The third party, also known as the mediator, tries to find points of agreement between the two parties so that they can agree on a fair and final decision. Unlike in the process of arbitration, the mediator does not act as a judge and does not make the final decision in a dispute.
Mediation is commonly used to resolve domestic relation disputes, such as divorce, visitation and child custody and is often actually ordered by the judge. Mediation is also used in civil damage and contract cases. The professional mediators, or lawyers acting as mediators due charge a fee for their services but the financial cost that the parties have to bear is much lower than the cost of fighting the matter out in court. Mediation and the Divorce Process
Mediation may also lead to an early settlement and makes the entire settlement process less stressful for both parties. However, it is important to remember that mediation is not always successful in settling disputes and the parties involved may not reach an agreement.
Arbitration, on the other hand, is like a mini trial that takes place out of court. The arbitrator or arbitrators act as the judge(s) and settle the dispute between the parties. The arbitrators are not practicing judges, but they may be retired judges, a lawyer(s), an organization or a panel provided by the American Arbitration Association.
The arbitration may be agreed to by the parties, may be required by a provision in a contract for settling disputes, or may be provided for by law.
In most cases, if arbitration has been required due to a contract, a petition can be submitted to court to convert the decision reached into a legal judgment, unless either party claims that there has been a gross injustice, collusion or fraud.
Many states require arbitration of cases on a non-binding basis so that these "mini-trials" by experienced lawyers will give the parties involved a clearer picture of the possible result of the case in court. These may lead to the parties accepting the arbitrator's decision so that the dispute is settled out of court. Difference between Limited Divorce and Absolute Divorce
To know the mediation and arbitration laws applicable in your state, consult a divorce lawyer or divorce attorney.
