Business arbitration and mediation both serve the same overarching purpose: to help opposing parties come to a fair resolution of the issues at hand. However, there are some key differences between business arbitration and mediation, and you should be aware of them if you are entering a civil suit or seeking alternative dispute resolution options to resolve an issue with another party.
During the business mediation process, a neutral third party acts as a mediator to help opposing entities or individuals explore their options for coming to an agreement. There is no requirement for settling, and the court typically sets the timeline for when to complete the mediation process.
Business arbitration primarily differs from mediation because the arbitrator has the power to decide on a final resolution and make a legally binding decision. When entering into the arbitration process, both parties agree to give the arbitrator this power. Much like the court process, business arbitration also gives both parties the opportunity to present supporting evidence, but this aspect is generally less formal than a court trial.
Business arbitration is a preferred method for dispute resolution for many businesses because it still garners a binding result without the time and expense of going to court. Contact us at Triple C Mediation if you are looking for an arbitrator to help you with a business dispute or if you would like to know more about how we support businesses going through the mediation process.