Arbitration and mediation are known as alternative dispute resolution procedures (“ADR”). ADR is a useful and sometimes required part of dispute resolution. Mediation is typically a non-binding process where the parties meet with a third party neutral, typically an attorney, and try to reach a resolution to either settle a case before litigation or arbitration or during the pendency of litigation or arbitration. Compromise is a key component to settlement and can save a party significant litigation costs and expenses.
Arbitration is a process where the parties agree to resolve their dispute outside of the courthouse. Sometimes a contractual provision requires the parties to use arbitration. Arbitration is an excellent way to resolve complex business disputes as opposed to litigation. In arbitration, a third party, again, typically an attorney, acts as the Judge. The decision of the arbitrator is final and binding. The hearing is conducted in an office, the rules of evidence are relaxed, scheduling is much easier, and the arbitrator is experienced in the area of the law that is the subject of the dispute. Because the ruling of the arbitrator is binding on the parties, there are typically no appeals, and the matter does not linger for years as opposed to litigation where appeals can take up to two years, if not longer.
The attorneys at Merbaum & Becker have years of experience in ADR and have been involved in hundreds of mediations and arbitration proceedings.
