Resolve Your Dispute Without Going To Court

Why choose mediation over arbitration for conflict resolution?

On Behalf of | Dec 21, 2023 | Mediation

If you’re a business owner, you likely understand that business disputes are inevitable from time to time. When conflicts arise, the path chosen for resolution can significantly impact the outcome and the continuity of relationships involved. Arbitration and mediation are two of the most common alternative conflict resolution methods businesses use to settle disputes.

In recent years, more and more businesses are choosing mediation over arbitration. This begs the question, why choose mediation over arbitration to resolve business disputes? Exploring the nuances and advantages that make mediation a compelling choice can help you make an informed decision when future business disputes arise.

Mediation vs. arbitration

Mediation is a collaborative conflict resolution process where a neutral third party, the mediator, facilitates communication between disputing parties. Unlike arbitration, the mediator does not impose decisions but assists in finding common ground. This voluntary process encourages open dialogue and promotes a sense of control among the involved parties.

Arbitration, on the other hand, involves neutral arbitrators making binding decisions after considering evidence and arguments from both sides. While arbitration offers a quicker resolution than litigation, the outcome may be less predictable, it is generally less cooperative in nature and the process can be less transparent.

Incentives to choose mediation

In the business world, relationships matter. Mediation fosters communication, allowing parties to voice concerns and interests. This open dialogue often preserves relationships, helping ensure that the business collaboration can continue with minimal disruption.

Mediation also empowers parties to shape their own resolution. Unlike arbitration, where decisions are imposed, mediation allows participants to have a say in the final agreement. This control can lead to more customized and mutually satisfactory outcomes.

While arbitration has its merits, mediation stands out for its emphasis on collaboration and control. Choosing mediation over arbitration can be a strategic decision, not just for resolution but for the long-term stability of your business relationships.