The Difference between Arbitration and Mediation
By Ivan Lys-Dobradin
Now more than ever, the overloaded Court systems throughout America are relying on alternative dispute resolution to resolve insurance claims. There are two primary forums for alternative dispute resolution in insurance claims: Arbitration and Mediation.
Arbitration is similar to litigation because both parties, the insured and insurance company, present their case by providing testimony and giving evidence. Arbitrations are typically less formal than a trial. However, one similarity is that in Arbitration, the cases are presented to an arbitrator, a judge-like figure who could be a retired judge, lawyer, or other types of professional. The arbitrator can render a judgment that is legally binding on both parties.
On the other hand, Mediation is a negotiation process. In this type of forum, both the insured and insurance company present their case to a mediator. A mediator is a neutral third party, also typically a retired judge or attorney. The mediator will attempt to assist both parties in resolving their dispute. Mediators will never render a judgment, and therefore mediations will sometimes not resolve the case at all. However, the mediator’s job is to push the parties to resolve the dispute by examining both sides and exploring possible settlement. The main focus of the mediator is to resolve the dispute. If the mediator is unsuccessful, then the parties can both move forward with litigating the case.
Arbitration and Mediation can sometimes be mandatory due to a contractual agreement between the parties, but they can also be Court-ordered. As always, make sure to consult with your lawyer if you are ever in a situation where you are participating in Arbitration, Mediation, or litigation.
If you have any questions regarding this, you can call our office 24 hours a day at 407-478-4878.
COHEN LAW GROUP
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