What’s the Difference between Mediation and Arbitration in New Jersey?

Both mediation and arbitration are useful tools when it comes to avoiding expensive, time-consuming and often cantankerous litigation. When you have a dispute with someone and the lawyers are unable to settle out of court at the traditional negotiation table, both parties put themselves in the hands of the judge and jury. What happens next is stressful and completely unpredictable. You may win; you may lose. Regardless, you are paying the lawyer.

However, if you opt for mediation or arbitration, you have more control over the outcome of the case. Both are alternative dispute resolutions – meaning when you opt for a more amicable route over going to court, you will likely time and money. You’ll also have more control over how the dispute is reconciled.

Mediation vs. Arbitration

• Mediation is generally a non-binding process, while arbitration is a binding process (like a trial outcome). Both, however, can be used as binding processes.
• Both processes use a third party to oversee the discussions between the two sides
• Arbitration users a panel of people who act as a judge. Generally, each complainant or the plaintiff and defendant choose an arbitrator. Those two arbitrators agree on a third and the trio reviews evidence and gives an opinion that is usually binding.
• Mediation, however, uses one person to mediate. They don’t “judge” the case but attempts to facilitate resolution of the matter. If the parties cannot come to an agreement, the mediator’s determination is non-binding and the plaintiff can take the matter to court.

Mediation is an effective way to deal with disputes in a number of legal sectors including: real estate, family law, employment law and more. The process is simply a more efficient and cheaper option than going to court. Additionally, the process has proven to be incredibly effective in resolving disputes and reducing court loads.

The important thing is that if you choose to go the alternative dispute route, you need to choose a mediator with the experience and knowledge of both mediation and arbitration so they can guide you successfully through the process.

The savvy attorneys at David & Mendelson have many years of experience mediating disputes. We invite you to call us for an initial consultation where we will discuss your rights and options and guide you toward the optimal way to decide your dispute.