Can Parties Be Required To Mediate Before Proceeding To Arbitration?

Mediation and arbitration are both common dispute resolution methods, and both can lead to effective outcomes. Many contracts include provisions that require parties to enter into mediation or arbitration, or first one and then the other, in the event of a dispute.

What is the difference between mediation and arbitration?

Through mediation, the parties attempt to resolve their dispute through a series of conversations with each other and a neutral mediator. Although mediation has collaboration as a fundamental aspiration, these conversations can fall anywhere on the spectrum from collaborative to adversarial. The mediator facilitates the parties' discussions and assists them in trying to reach a mutual and voluntary resolution. If the parties agree on a solution, they usually opt to execute a legally binding settlement agreement.