Difference between legal mediation and arbitration

To solve commercial, labor or contractual conflicts in an efficient, fast way without going through a court; you must turn to some alternative resolution of conflicts.

Both arbitration and mediation are forms of “alternative dispute resolution”, this means that they do not require traditional judicial procedures.

Mediation and arbitration are two alternative methods that differ in their regulation, procedure, among other factors.

Mediation

Mediation is an informal procedure provided by a mediator whose function is to help the parties negotiate and reach an agreement.

The mediator can make suggestions or proposals, he can intervene in the discussions, and even make recommendations, but above all he should be able to facilitate communication and the negotiation process between both parties until they reach a satisfactory agreement.

Both parties have to design and work on the agreements that they will end up adopting, but with the direction and advice of the mediator, the process can be controlled, and this will adapt to their rhythm and their needs.

Mediation is designed to resolve the conflict quickly, usually in a few sessions.

Characteristics of mediation:

• Willfulness.
• Impartiality.
• Speed.
• Informality.
•  Out-of-court

Arbitration

Arbitration is a formal procedure decided by one or more arbitrators, whose function is to apply the law and make a decision in this regard.

The referee (similar to the judge) usually comes from outside and has decision-making power, with sufficient authority to make his determination binding on the parties.

The arbitration procedure is similar to a trial, there are two parties in dispute, a third party outside the conflict that, through a phase of allegations and evidence, must take a final decision to resolve the dispute.

Arbitrations are not regulated by the Civil Procedure Law, but by the Arbitration Law. The arbitrator is the one who decides, since the parties designate him so that he is the one who adopts a solution. The decision is embodied in a document called an award.

Characteristics of arbitration:

•  Willfulness.
•  Simple and fast procedure.
•  Impartiality and neutrality.
•  Confidentiality
•  Immediacy.

With an arbitrator the resolution will be through its decision forcing the two parties to accept it, while with a mediator an agreement will be created by both parties.

In Quadrans we have the Mediation and Arbitration service, to advise you in the resolution of your problem effectively.

Legal and Accounting Consulting in Playa del Carmen