Understanding The Difference Between Mediation, Arbitration and Trial

Many who confront the legal system for the first time,trial de novo if he or she does not achieve a better
voluntarily or involuntarily, are faced with having toresult in trial than achieved in arbitration. Private
decide the forum in which their dispute will be resolved.organizations like AAA, JAMS, Judicate West, and
In some instances, the forum in which a dispute will beIVAMS similarly offer arbitration services. The cost is
resolved has been pre-selected by the partiessimilarly based on an hourly rate or half or full-day
however, more often than not, litigants will make theirbasis.
forum selection only after a dispute has actually arisen.In advance of arbitration, with all sides usually
It is therefore important to have an understanding ofrepresented by counsel because arbitration is an
the difference between mediation, arbitration and trialadversarial proceeding, the arbitrator will be provided
and the benefits and drawbacks of each. Often times,briefs detailing the positions, arguments and demands
the forum selected will dictate how quickly andof each side. The rules of evidence in arbitration
effectively the dispute is resolved.proceedings are quite liberal. As such, documents and
Mediation is a voluntary process wherein two or moreother writings that might be excluded from evidence in
parties to a dispute try to resolve their differences witha trial will be received and considered in arbitration.
the assistance of a neutral, disinterested third partyArbitration will proceed in whatever fashion the parties
such as an attorney or retired judge. In most instances,desire. This may mean evidence is introduced through
the cost of the mediator is shared equally however,the admission of exhibits and by way of live or
this is not always the case, especially where one partyrecorded testimony or simply by way of offer of
has an interest in seeing the matter resolve and offersproof (usually an attorney explaining what the
to pay for the mediation in order to entice the otherevidence is). The proceeding is much more formal that
party to attend and partake. These days, there area mediation and, as above, is adversarial in nature.
numerous private mediation centers including, but notOnce all the evidence is received, the arbitrator will
limited to, at least in the Southern California area, AAA,usually take the matter under submission and render
JAMS, Judicate West, and IVAMS. The cost ofan opinion and/or issue an award shortly thereafter.
retaining a mediator to assist in resolving your disputeThis opinion or award is final and may only, under very
will vary depending on such factors as the experiencelimited circumstances, be challenged or appealed.
level of the mediator, how busy he or she may be, theArbitration proceedings are usually considerably shorter
nature of your dispute, the complexity of the issuesthan a trial and will often be less expensive though that
presented, and the number of involved parties. Mostis not always the case. The major drawback to
private mediation centers bill for their mediator's timearbitration is that you have trusted the outcome of
on an hourly basis however, others bill a flat fee for ayour case to a single trier of fact giving up your right to
half or full day.a jury. This may be fine in some cases however,
Mediation is not, like arbitration or trial, adversarial inwhere passion and prejudice may play a role in how
nature. As such, parties to a dispute can mediate theirthe case is decided, it may be advantageous to you,
differences without counsel. Anything said duringdepending on which side of the case you are on, to try
mediation is inadmissible in court. Thus, it is notthe case to a jury of twelve.
uncommon to see parties who partake in a mediationTrial is what we most frequently see on TV. It is the
sitting together in a conference room and, with thesubject of virtually every hit crime drama of our time
assistance of the mediator, working toward identifyingfrom "LA Law" to "Boston Legal" to "Law &
the contested issues and then brain storming toOrder". In the absence of a plea agreement, trial is
resolve them. Mediation is a give and take processwhere virtually all criminal cases are adjudicated. In the
where there is no declared winner and no declaredcivil arena, trials are less frequent. In fact, most, upward
loser. For mediation to be successful, each side mustof 90%-95% of all litigated civil disputes settle in
give up something. Mediation is non-binding unless theadvance of trial. Trial is risky as there is no way to tell
parties agree to be bound by whatever result iswhat a jury (should you chose to proceed by way of
achieved. Mediation is favored and recommended injury trial) will do with a case. Simple things such as
cases involving neighborly disputes, family disputes, ordemeanor, appearance, accent, etc. can have a
where parties to a lawsuit involving a claim fordramatic effect on how a jury views a case. If there is
monetary damages believe that with the interventionanything certain about a jury trial, it is the uncertainty of
of a neutral third party, a settlement can be achieved.the outcome. For that reason, at EISENBERG LAW
Mediation is often the easiest and most cost effectiveGROUP we work hard to resolve disputes before trial.
way to resolve disputes. The major drawback toThis is not to suggest that we at EISENBERG LAW
mediation is that if no resolution is achieved, the otherGROUP avoid or shy away from trial. Quite the
side will, by virtue of your disclosures in mediation, haveopposite! Messrs. Day and Eisenberg have over
a better feel for what theories or claims (and strengths30-years combined trial experience and a fabulously
and weaknesses thereof) you might proffer in litigation.successful track record for favorable outcomes. Trials
Arbitration differs little from a bench trial (a trial in whichhowever, are expensive and carry with them not only
the judge serves as trier of fact as opposed to a jurythe uncertainly referenced, but the risk of appeal which,
fulfilling that role). Arbitration may be binding orat present, can tie a matter up for 2 ½ years. In
non-binding. Binding arbitration is usually by agreementaddition, trials can be long and drawn out. Many judges
of the parties with each expressing, in a writing, aonly hold trial 3-days a week which means a 5-day
willingness and commitment to be bound by whatevertrial with jury selection and deliberation can last
decision the arbitrator may reach. Non-binding2-weeks or more. For these reasons, we at
arbitration affords the losing party the opportunity toEISENBERG LAW GROUP consider use of all
seek a trial de novo (a trial on the merits withoutavailable forums for resolving your dispute placing your
regard to the arbitrator's findings) however, there areinterests above all else.
often penalties imposed on the party requesting the