Question

Explain the similarities and differences between negotiation, mediation, and arbitration. Why is each better or worse than litigation?

Answer 1

Litigation involves taking the dispute to a court of law by the concerned parties for resolution. The drawbacks of litigation are time consuming, expensive, tedious with lots of paperwork and the resolution or judgment depends upon the judge. To avoid these problems, Alternative Dispute Resolution (ADR) have been developed.

Negotiation, arbitration and mediation are Alternative Dispute Resolution (ADR).

Negotiation involves face-to-face meetings by the parties concerned, with or without, a legal representative. It is a method by which compromise and agreements are reached to avoid costly litigation.

Mediation is a process by which the parties try to resolve the dispute with the assistance of a mediator. The mediator helps in reaching a decision and facilitates the process without getting involved in the dispute. He identifies the issues that are in dispute, develops alternatives and facilitates the agreement between the parties. At the end of the mediation, an agreement is drawn up which is signed by both parties.

Arbitration is a formal process where two parties make their arguments to an arbitrator, who is a neutral third party,