Arbitration

It is a type of alternate dispute resolution where a particular neutral arbitrator listens to both the parties and makes a decision.

Arbitration is similar to litigation in the sense that both the parties meet in hostile circumstances and try to convince the arbitrator that their party deserves to win. Both the parties present the needed evidence and both the parties agree in advance that the decision of the arbitrator would be final.

The arbitrator's decision is rarely appealed in the court, though both the parties have the right to seek judicial relief from binding the arbitrator's decision in case the arbitrator is prejudiced or has exceeded the agreed-upon authority. The parties could also seek judicial relief if the final decision has any error of fact.

The parties could enter arbitration based upon ordered by a court or it may be mandatory based upon the rules that the parties previously agreed upon.

Mediation

This is the process of resolving disputes with the help of a neutral party. The party assists the parties, in finding the ways of resolving the dispute. A facilitator (mediator) serves as an interface between the two parties and assists both the parties in reaching a mutually agreeable decision. Once the decision is made on agreement is reached, it could be made legally obligatory, but with the consent of both parties.

Both the parties submit legal evidences supporting them to the mediator. After both the parties provide legal briefs the mediator discusses with them privately and points out at the strengths and weaknesses of their presentation.

Then again the mediator may discuss with the parties in private and encourage them to reach an agreement that is mutually satisfying.

The disputed parties have the choice of selecting a mediator with experience in the subject matter of dispute. They could also choose a mediation organization whose mediator panels include former judges and attorneys.

There are certain mediation services supported by the government and provide mediators free of cost to parties involved in certain kinds of disputes.