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Arbitration is the submission by the parties of their dispute to an impartial tribunal for resolution or arbitrator. Arbitration administered through agencies such as the American Association of Arbitration is binding. Two or more parties may agree in writing to submit to an arbitrator any controversy existing between them at the time of the agreement; the submission by the parties of their dispute to an arbitrator for resolution is final and binding and avoids extensive litigation in court.
Mediation is a formal conference between parties and a neutral person, a mediator, with the intent to arrive at a settlement. A decision is not rendered; instead, the parties try to reach a mutually agreeable settlement with the skilled help of a mediator.
Mediation means a process whereby a neutral third person called a mediator acts to encourage and facilitate the resolution of a dispute between two or more parties. It is an informal and non-adversarial process with the objective of helping the disputing parties reach a mutually acceptable and voluntary agreement. In mediation, decision-making authority rests with the parties. The role of the mediator includes, but is not limited to, assisting the parties in identifying issues, fostering joint problem solving, and exploring settlement alternatives.
Mediation may help the parties resolve their dispute by reaching an acceptable settlement. If mediation is not possible, arbitration may provide a faster and less expensive alternative to proceeding in court.
The fastest growing area of litigation is among beneficiaries and heirs. Even after all of the estate planning is complete, some beneficiaries and heirs challenge the estate planning of the benefactor with the intent to obtain more. The use of a mediator or arbitrator can save thousands of dollars in expensive litigation.