Answer to Question #220573 in Law for W I S E

Question

3. What are the differences between negotiation, mediation and arbitration?

Answer 1

• Negotiation

Negotiation is a process where two parties in a conflict or disagreement try to reach a resolution together. During a negotiation, the parties or their representatives (lawyers) discuss the issues to come to a resolution. Before a negotiation, each party should consult a lawyer. 

• Mediation

Mediation is a process where a neutral person assists the parties in discussing the matter and reaching a resolution. A neutral person is a person who does not support either party in the conflict. This person is called the mediator, and they help the parties communicate. A mediator ensures that communication between the parties is fair and honest. Mediators can assist by clarifying issues, identifying concerns, and helping parties understand each other’s interests. Mediation takes place in private and the decisions made are private. Mediation can take place in person where parties meet face-to-face for discussions. Or, the parties may be placed at separate locations where the mediator communicates information between parties.

• Arbitration

Arbitration is a process where a neutral third party makes a decision. The decision-makers in arbitration are called arbitrators. There can be one arbitrator or multiple.

The arbitrator will arrange a meeting between the parties to determine what issues need to be resolved during the arbitration. Each arbitrator hears the parties present their case and their supporting evidence.