The two most common alternative dispute resolution (“ADR”) methods available are arbitration and mediation. Both methods can help you settle your conflict and save you significant time and money. While both share characteristics of a traditional courtroom trial, they differ in significant ways:

1. In disputes involving contracts and other agreements, the parties to the contract can require the use of either method as a means for resolving their disputes before, or instead of, filing a suit.

Arbitration is the ADR process for the resolution of legal disputes that most closely resembles an actual trial. An arbitration is presided over by an independent third party who has no interest in the outcome of the dispute called the Arbiter. The Arbiter usually has specific expertise in the industry and field in which the dispute has arisen. For example, a construction dispute will have an Arbiter who may be a civil engineer or an attorney with many years of experience in construction law. An accounting dispute will have an Arbiter who is a Certified Public Accountant. With an expert presiding over the dispute, the parties can benefit from the particular understanding and analysis of the facts an expert can provide. Additionally, the Arbiter may be better aware of the law governing the dispute than a Judge drawn at random or a jury of people who do not have that type of specific experience and education. This allows the parties to focus on the particular strengths of their position without concerning themselves as much with what laws should apply.

Arbitration is similar to a traditional case in that the parties generally must agree to make the result binding on all parties. For that reason, arbitration is very similar to a court trial, only with a more relaxed set of rules governing the proceeding. In certain circumstances non-binding arbitration may be available, but either way, the parties cannot be compelled into arbitration absent a consensual, signed agreement. Arbitration can be used to settle the entire dispute or to settle small parts of the total dispute. This particular benefit helps to decrease the time and expense of a full courtroom trial on all issues. Many disputes handled in arbitration involve the scope of what is to be arbitrated and even whether the parties agreed to arbitration at all.