Mediation, Arbitration, Litigation - What Do They Mean?

When disputes arise a lot of people immediately jump to litigation and taking someone to court. However, that’s not the only way to resolve disputes. There is mediation, arbitration, and litigation. 

Mediation is probably the most cost-effective way to resolve disputes, and is the least formal process. When you go to mediation, both parties agree to resolve their dispute with a neutral third party - a mediator. The mediator will help facilitate a discussion and help both parties come to a mutually acceptable agreement. The final agreement is decided by the parties themselves.

Arbitration is more formal than mediation, but not quite as formal as litigation. With arbitration, the neutral third party, the arbitrator, listens to both sides and makes a decision, similar to a judge. This decision can be binding (enforceable in court) or non-binding. 

Litigation is the most costly and formal process. There are strict, procedural rules that must be followed during litigation. In litigation a judge or jury decides what will happen, and that decision is legally binding and enforceable. 

There isn’t a ‘right’ answer on whether you should resolve your disputes with mediation, arbitration, or litigation. If you are needing help with your situation, call Irvine Legal at 385-333-7966 to schedule a free phone consultation.