This is a more formal process which places before a
neutral arbitrator the facts and needs of the disputing parties. The
arbitrator assesses all information and then makes a ruling or
award. Arbitration is usually entered into by contractual agreement
when issues cannot be resolved by mediation. Arbitration is usually
faster, less formal and less costly than litigation. Arbitration
Awards cannot usually be appealed by the parties, whereas,
litigation decisions can be appealed to a higher court.
There are two main forms of Arbitration:
Mediation/Arbitration Same: This is a situation where the
mediator is also chosen as the arbitrator. The decision to use the
same professional in both capacities is determined at the beginning
of the mediation process.
Mediation/Arbitration Different: This is a situation where a
different person from the mediator is chosen as the arbitrator. This
option may use an Arbitration Panel where the disputing parties each
choose an arbitrator. Then the arbitrators, in turn, choose another
arbitrator to chair the panel.
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