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Mediation and arbitration are both ways to resolve a conflict without involving a conventional court, but they differ fundamentally. In mediation, an impartial mediator guides the parties to reach an agreement together; in arbitration, an arbitrator makes a binding decision, just like a judge.
Mediation: reaching a solution together
In mediation, you engage an independent, impartial mediator. The mediator does not make a decision but helps the parties to continue the dialogue and reach a solution together. The parties therefore determine the outcome themselves. Mediation is voluntary, confidential, and aimed at preserving the relationship.
Arbitration: a binding decision
In arbitration, parties submit their dispute to one or more arbitrators, who make a binding decision: the arbitral award. This resembles a judicial ruling, but bypasses the state courts. Arbitration is often faster, more confidential, and can be handled by arbitrators with specific expertise. An arbitral award is enforceable in the normal course of action, subject to permission from the court.
The core difference
The core: in mediation, the parties decide for themselves and the mediator assists; in arbitration, the arbitrator decides and the parties are bound by that decision. Mediation is therefore solution-oriented and voluntary, whereas arbitration is decisive and binding.
Which route fits?
If you wish to resolve a conflict together while preserving the relationship, mediation is appropriate. If you desire or require a binding outcome—for example, because the parties genuinely cannot reach an agreement—then arbitration (or the ordinary courts) is more suitable. You often define the chosen route in advance in a contract or dispute resolution agreement.
Frequently Asked Questions
What is the difference between mediation and arbitration?
In mediation, a mediator helps the parties reach an agreement together; in arbitration, an arbitrator makes a binding decision.
Is an arbitral award enforceable?
Yes, after leave from the judge (exequatur), it can be executed, just like an ordinary judgment.
When should I choose mediation?
If you wish to resolve the conflict together while preserving the relationship, arbitration or the courts are more suitable for a binding outcome.
The right route in the event of a dispute?
Our legal experts and lawyers advise, mediate, and litigate. View our legal assistance or our litigationteam, or schedule a free consultation.
