NFP Q&A: Clarifying Arbitration vs. Mediation vs. Litigation

Question:  What is the difference between arbitration and mediation?
Wendy:  Arbitration is a method of finally determining a dispute.  The end result is an award which is similar to a Court Order in that it is final and binding upon the parties and can be enforced against the parties in the same way as a judgment of the Court.  In an arbitration, a neutral third party – the arbitrator – hears the evidence and makes a decision as to who is right and who is wrong. 

In a mediation, on the other hand, the neutral third party – the mediator – makes no such determination, but rather focuses on trying to assist the parties to come to a negotiated mutually satisfactory settlement or compromise of the matters in dispute.  Sometimes, the mediator is successful, in which case, the dispute is over.  Sometimes the mediator is not successful, in which case the dispute continues on.