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Mediation |
Arbitration |
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| Control |
You participate directly in deciding on the process and mediator |
The process is set, and the arbitrator(s) decides the award based on evidence presented by lawyers on both sides |
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| Formality |
Informal |
Formal |
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| Cost |
Less expensive than arbitration |
More expensive than mediation, less expensive than litigation |
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| Binding
or nonbinding |
Non-binding resolution: Either party may accept or reject a mediated solution and may pursue arbitration later or simultaneously |
Binding resolution, almost always upheld by courts |
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| Relationships |
Because of cooperative setup, relationships are more likely to be preserved |
Adversarial setup may make it difficult to continue a relationship with a firm or adviser |
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| Settlement |
You and the firm or adviser seek to negotiate a settlement that works for everyone
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Professional arbitrator(s) decides the amount of award, if any. Award must be paid within 30 days or interest accrues |
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| Impartiality
and fairness |
Neutral, trained third parties mediate negotiations |
Impartial, professional arbitrators hear evidence from both sides to issue a fair decision |
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