Using Mediation VS Arbitration in Settling Personal Injury Cases

Only a small fraction of personal injury cases get to litigation. Rather than go through lengthy trials, many parties prefer to settle their claims using informal negotiations. When that doesn’t work, they turn to alternative dispute resolution (ADR) strategies that are very effective.

Mediation and arbitration are two common tools of ADR. You may have heard of them, but what you may not know is how they work. While mediators and arbitrators share similar goals, they have different strategies. In this article, we’ll explain these two settlement options, and you can decide which is best for your case. For more info, visit website.

How Mediation Works

The next point of call after an unsuccessful negotiation is usually mediation. It’s a situation where both parties to a lawsuit meet with a neutral third-party, called the mediator, to help them reach an agreement. The mediator’s job is not to make decisions; instead, he provides an objective view that’ll facilitate a settlement.

During mediation, both sides meet together with the mediator to brief him of their position. They’ll then meet separately with him, and he’ll go back and forth with their demands, till they reach an agreement. However, mediators can’t make legally binding contracts, and an unhappy party can still pursue a trial.

How Arbitration Works

It involves resolving issues through the use of an arbitrator or a panel of arbitrators. The arbitrator first listens to both parties and acts as a judge or jury by issuing a ruling. Arbitration can be voluntary, with both parties agreeing to the process. It can also be mandatory. For example, some companies have clauses that force disputes to go through arbitration rather than trial.

Both parties can choose between a binding or non-binding arbitration. In binding arbitration, the arbitrator’s decision is legally binding, and both parties must accept the ruling. On the other hand, a non-binding arbitration isn’t legally enforceable. If the parties don’t like the arbitrator’s decision, they can reject it and choose to pursue a trial instead.

Differences Between Mediation and Arbitration

The main difference between both methods is that a mediator only suggests a possible outcome, allowing both parties to participate in their resolution. On the other hand, an arbitrator imposes a final ruling on the case.

Also, arbitration is more formal than mediation, although not as much as a trial. In terms of cost, mediation is a cheaper process; however, arbitration is still less expensive than litigation.

Conclusion Whether you’re taking the mediation or arbitration route, get a Lancaster personal injury lawyer to protect your rights. At Georgelis Injury Law Firm PC, we pride ourselves on helping individuals navigate successfully through their lawsuits. Click here to find out more about us

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