What Is The Difference Between Arbitration And Mediation?

People sometimes confuse arbitration and mediation.  Mediation is merely a settlement meeting.  The parties can either settle or not settle, depending on what they perceive to be in their best interests.  A mediation does not require any particular result and often there is no result at all and the case does not settle.  Mediations are mandated in most filed cases in Vermont, whether you want to or not.

On the other hand, arbitration is essentially a substitute trial.  The parties agree to one or more arbitrators who hear evidence and render a decision that usually ends the matter and the decision will usually be enforced by Vermont Courts.

The positive part of arbitrations is that they can be quicker and less expensive and not require as many formalities as a trial.  On the other hand, many people do not want to have arbitrations because they would rather have a jury of their peers make the decision and because they cannot agree on “fair” arbitrators.

Arbitrations are frequently forced on consumers as a result of a larger agreement (an auto rental agreement, for example) and dictate the range of arbitrators that can be selected.  Obviously, as with juries, a bad arbitrator is as bad as a bad jury.  There is a concern that mandatory arbitrations that are forced on people are essentially rigged to provide the outcome desired by the company who wrote the contract.  Most arbitration agreements of this kind are usually not favorable to claimants and are favorable to businesses, insurance companies and the groups who wrote the contract.

Litigants can also voluntarily agree to arbitrate in lieu of going to trial.  In these circumstances, each side agrees to the rules governing the arbitration.  With the advice and input of their attorneys arbitration can be a good process and be an advantage to both sides, but it always depends on the facts.

If we can be of service please feel free to contact us at winburnlaw.com or toll free at 800‑640‑5100.  We handle cases from Bennington to St. Albans, Vermont, the Northeast Kingdom to Brattleboro and all points in between.

©Winburn Law Offices