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Understanding Judicial Arbitration Mediation Services

Arbitration, mediation, and conciliation—collectively called appropriate dispute resolution (ADR)—are alternative processes that can be used to settle disputes between parties. All ADR hearings are private and confidential, and the processes are less formal than a court trial. If no settlement is reached through ADR, no statements made during the proceedings are admissible as evidence in any subsequent litigation.

There are two types of arbitration—compulsory and voluntary. During compulsory arbitration, opposing parties submit their dispute to one or more impartial persons, called arbitrators, for a final and nonbinding decision. Either party may reject the ruling and request a trial in court. Voluntary arbitration is a process in which opposing parties choose one or more arbitrators to hear their dispute and submit a final, binding decision. Arbitrators usually are attorneys or business persons with expertise in a particular field. The parties identify, in advance, the issues to be resolved by arbitration, the scope of the relief to be awarded, and many of the procedural aspects of the process.

Mediation, or neutral evaluation, involves an attempt by the parties to resolve their dispute with the aid of a neutral third party. This process generally is used when the parties wish to preserve their relationship. A mediator may offer suggestions, but resolution of the dispute rests with the parties themselves. Mediation proceedings also are confidential and private. If the parties are unable to reach a settlement, they are free to pursue other options. The parties usually decide in advance how they will contribute to the cost of mediation. However, many mediators volunteer their services, or they may be court staff. Courts ask that voluntary mediators provide their services at the lowest possible rate and that parties split the cost. Depending on the type of case, court-referred community mediation centers may charge a small fee to the parties involved in mediation.

Conciliation, or facilitation, is similar to mediation. The conciliator’s role is to guide the parties to a settlement. The parties must decide in advance whether they will be bound by the conciliator’s recommendations; they generally share equally in the cost of the conciliation.