How does mediation differ from arbitration?

Mediation is a method of dispute resolution in which a neutral third party, the mediator, assists the disputing parties in reaching a mutually acceptable agreement. The key characteristic of mediation is its focus on negotiation and collaboration rather than on imposing a solution. The mediator facilitates communication, helps clarify issues, and encourages participation from both parties, aiming to help them find common ground and resolve their conflict.

This approach is fundamentally different from arbitration, where an arbitrator hears both sides of the dispute and makes a decision that is usually binding on the parties. In mediation, no binding decision is imposed; rather, the goal is to empower the parties to reach their own resolution.

Additionally, mediation does not occur within the formal legal proceedings; it is a more informal process that offers flexibility in terms of procedure and outcome. Unlike arbitration, which often involves strict rules and procedures, mediation emphasizes open dialogue and self-determination for the parties involved.

Thus, understanding the nature of mediation as a negotiation-focused process is crucial for distinguishing it from other forms of dispute resolution like arbitration.