Understanding The Difference Between Mediation, Arbitration, and Trial
By: Mark Eisenberg
In some instances, the forum in which a dispute will be resolved has been pre-selected by the parties however, more often than not, litigants will make their forum selection only after a dispute has actually arisen. It is therefore important to have an understanding of the difference between mediation, arbitration and trial and the benefits and drawbacks of each. Often times, the forum selected will dictate how quickly and effectively the dispute is resolved.
These days, there are numerous private mediation centers including, but not limited to, at least in the Southern California area, AAA, JAMS, Judicate West, and IVAMS.
The
cost
of
retaining
a
mediator
to
assist
in
resolving
your
dispute
will
vary
depending
on
such
factors
as
the
experience
level
of
the
mediator,
how
busy
he
or
she
may
be,
the
nature
of
your
dispute,
the
complexity
of
the
issues
presented,
and
the
number
of
involved
parties.
Most
private
mediation
centers
bill
for
their
mediator's
time
on
an
hourly
basis
however,
others
bill
a
flat
fee
for
a
half
or
full
day.
Mediation
is
not,
like
arbitration
or
trial,
adversarial
in
nature.
As
such,
parties
to a
dispute
can
mediate
their
differences
without
counsel.
Anything
said
during
mediation
is
inadmissible
in
court.
Thus, it is not uncommon to see parties who partake in a mediation sitting together in a conference room and, with the assistance of the mediator, working toward identifying the contested issues and then brain storming to resolve them. Mediation is a give and take process where there is no declared winner and no declared loser. For mediation to be successful, each side must give up something.
Mediation is non-binding unless the parties agree to be bound by whatever result is achieved. Mediation is favored and recommended in cases involving neighborly disputes, family disputes, or where parties to a lawsuit involving a claim for monetary damages believe that with the intervention of a neutral third party, a settlement can be achieved. Mediation is often the easiest and most cost effective way to resolve disputes.
The
major
drawback
to
mediation
is
that
if
no
resolution
is
achieved,
the
other
side
will,
by
virtue
of
your
disclosures
in
mediation,
have
a
better
feel
for
what
theories
or
claims
(and
strengths
and
weaknesses
thereof)
you
might
proffer
in
litigation.
Arbitration differs little from a bench trial (a trial in which the judge serves as trier of fact as opposed to a jury fulfilling that role). Arbitration may be binding or non-binding. Binding arbitration is usually by agreement of the parties with each expressing, in a writing, a willingness and commitment to be bound by whatever decision the arbitrator may reach.
Non-binding arbitration affords the losing party the opportunity to seek a trial de novo (a trial on the merits without regard to the arbitrator's findings) however, there are often penalties imposed on the party requesting the trial de novo if he or she does not achieve a better result in trial than achieved in arbitration.
Private
organizations
like
AAA,
JAMS, Judicate
West,
and
IVAMS
similarly
offer
arbitration
services.
The
cost
is
similarly
based
on
an
hourly
rate
or
half
or
full-day
basis.
In
advance
of
arbitration,
with
all
sides
usually
represented
by
counsel
because
arbitration
is
an
adversarial
proceeding,
the
arbitrator
will
be
provided
briefs
detailing
the
positions,
arguments
and
demands
of
each
side.
The
rules
of
evidence
in
arbitration
proceedings
are
quite
liberal.
As
such,
documents
and
other
writings
that
might
be
excluded
from
evidence
in a
trial
will
be
received
and
considered
in
arbitration.
Arbitration will proceed in whatever fashion the parties desire. This may mean evidence is introduced through the admission of exhibits and by way of live or recorded testimony or simply by way of offer of proof (usually an attorney explaining what the evidence is). The proceeding is much more formal that a mediation and, as above, is adversarial in nature.
Once
all
the
evidence
is
received,
the
arbitrator
will
usually
take
the
matter
under
submission
and
render
an
opinion
and/or
issue
an
award
shortly
thereafter.
This
opinion
or
award
is
final
and
may
only,
under
very
limited
circumstances,
be
challenged
or
appealed.
Arbitration
proceedings
are
usually
considerably
shorter
than
a
trial
and
will
often
be
less
expensive
though
that
is
not
always
the
case.
The
major
drawback
to
arbitration
is
that
you
have
trusted
the
outcome
of
your
case
to a
single
trier
of
fact
giving
up
your
right
to a
jury.
This
may
be
fine
in
some
cases
however,
where
passion
and
prejudice
may
play
a
role
in
how
the
case
is
decided,
it
may
be
advantageous
to
you,
depending
on
which
side
of
the
case
you
are
on,
to
try
the
case
to a
jury
of
twelve.
Trial
is
what
we
most
frequently
see
on
TV.
It
is
the
subject
of
virtually
every
hit
crime
drama
of
our
time
from
"LA
Law"
to
"Boston
Legal"
to
"Law
&
Order".
In
the
absence
of a
plea
agreement,
trial
is
where
virtually
all
criminal
cases
are
adjudicated.
In the civil arena, trials are less frequent. In fact, most, upward of 90%-95% of all litigated civil disputes settle in advance of trial. Trial is risky as there is no way to tell what a jury (should you chose to proceed by way of jury trial) will do with a case.
Simple things such as demeanor, appearance, accent, etc. can have a dramatic effect on how a jury views a case. If there is anything certain about a jury trial, it is the uncertainty of the outcome.
For that reason, at EISENBERG LAW GROUP we work hard to resolve disputes before trial. This is not to suggest that we at EISENBERG LAW GROUP avoid or shy away from trial. Quite the opposite! Messrs. Day and Eisenberg have over 30-years combined trial experience and a fabulously successful track record for favorable outcomes.
Trials however, are expensive and carry with them not only the uncertainly referenced, but the risk of appeal which, at present, can tie a matter up for 2 ½ years.
In
addition,
trials
can
be
long
and
drawn
out.
Many
judges
only
hold
trial
3-days
a
week
which
means
a
5-day
trial
with
jury
selection
and
deliberation
can
last
2-weeks
or
more.
For
these
reasons,
we
at
EISENBERG
LAW
GROUP
consider
use
of
all
available
forums
for
resolving
your
dispute
placing
your
interests
above
all
else.
