Varying methods of alternative dispute resolution (ADR) have been popular for decades now, moving past being trendy to being expected, normal options in solving legal problems. In California, arbitration and mediation are commonly used to resolve business issues, as well as many others. Judicial reference is also used in California and are helpful as part or all the case may be ironed out in front of a neutral party with the experience to act as referee in the dispute.
Arbitration and mediation are often confused, and there are some similarities—most of which correlate with the enormous benefits of using ADR over litigation. Scheduling (and rescheduling too) is usually much easier as mediators and arbitrators have more flexible schedules, are usually open to meeting at alternative locations that are more affordable to use and away from the courtroom and will sometimes even work with the disputing parties in the evenings or on weekends.
Unlike litigation, the proceedings are not public record and the parties involved are expected to uphold the confidentiality of either arbitration or mediation. While there may be expense involved, both arbitration and mediation are known to be significantly less expensive, and the timeframe involved for reaching a resolution is usually much shorter.
There are essential differences though too for these two forms of ADR. There may be more than one arbitrator, and in fact a panel of several may be chosen. The setting may be slightly more formal than mediation, and the arbitrator will examine evidence and decide the case—in comparison to mediation where the mediator does not decide but facilitates as the disputing parties reach a resolution together. Arbitration is often considered to be more structured and binding than the mediation process too.
Either form of ADR may be recommended by the court, chosen by the parties disputing, or pre-determined in a contract with a clear-cut dispute resolution clause. Arbitration may be used more on the corporate level to settle disputes, while mediation is an even more casual setting that often helps preserve long-term business relationships thanks to the thoughtful work of the mediator. Typical resolutions met usually settle business partnership issues, revolving around profits, work duties, or dissolution. A wide range of employer/employee disputes may be easier settled in the casual setting as well. Vendor disagreements centered around failure to deliver, breach of contract, or financial disputes may be settled in ADR, along with client issues or disputes involving other businesses—and ones that may have worked together for decades.
If a resolution can be reached, the arbitrator or mediator is responsible for drafting documents to be signed by the parties involved, indicating a binding agreement that may be difficult to appeal. If ADR is not effective for the businesses trying to settle a dispute, they may move on to litigation next.
Attorney Shane Coons is highly skilled in all methods of ADR, to include mediation, arbitration, and California’s judicial reference system. If you have a legal issue and want to learn more about the best alternative dispute resolution process for your case, please call Shane Coons now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.