Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

When parties attend mediation, they need to have a willingness to settle.  People get more information and room to explore alternatives to settle.  In mediation, the parties are allowed to discuss whatever they want as long as it leads to a settlement even though the discussions may not be legally relevant.  The mediator does not need to be an attorney.  The mediator works by the hour.  Once the mediation is over, there are no more hours for the mediator to charge.  Mediation is expensive when the parties do not go to the table ready to settle.  This creates more hours in the mediation process.  Mediations are less formal than arbitrations.  The results are more flexible because the parties negotiate, and have control.

Arbitration focuses more on the legal issues.  Arbitrator fees are more expensive that mediator fees.  They may be $500/day in the Midwest or as high as $1500/day in the West.  Arbitration may be a slow process, taking approximately 60 days from a request.  The timing depends on the arbitrators availability to read transcripts and exhibits.  The awards in arbitration are less flexible than those in mediation.

In both arbitration and mediation, there is a loss in time for the people who participate.  They may be dissatisfied with the workplace because they are less efficient and less productive.  There is value in resolving disputes early.