Understanding Mediation, Arbitration, and Litigation: Key Differences Explained (Full Transcript)

Speaker 1: Good afternoon. Anton Kaminsky for Kaminsky Law, another installment of Legalese. What is the difference between mediation, arbitration, and litigation? Who have traveled from villages near and far, lend me your ears. Mediation is when two people involve a third person to help them resolve their argument. Usually that third person is neutral. Sometimes it could be a friend of both parties. Sometimes it could be an advisor of the business. It's usually either a lawyer or a judge. Mediation is non-binding. So if the two people can't agree or the third neutral party can't help them resolve their dispute, they will typically go their separate ways and proceed with their claims against each other. A mediator should be neutral. It can't be your best friend. It can't be the other side's worst enemy. And it probably shouldn't be somebody that is knee deep in your dispute. Arbitration is a little bit more formal than mediation. There you will typically have a neutral third person that is, again, either a judge or a lawyer. And that lawyer actually hears your dispute and helps you resolve the case. Arbitrations can take many forms. Some of them can be informal, where that third person will hear the dispute and then not necessarily rule on it. And some of them can be very formal, where the third person hears the dispute, they rule on the dispute, and that ruling is actually final and binding. Litigation is the next level. Litigation is a formal lawsuit. It is going through the court system to resolve your dispute. Now the neutral third person is no longer a friend or a business advisor, or some random lawyer that you guys hired. It is now a judge that is usually elected or appointed, sitting in a court, following by court rules, hearing your dispute. Typically, people will agree to either mediate, arbitrate, or litigate their disputes in their contracts. If there is nothing in a contract, the only way that you can get someone to mediate or arbitrate is by getting them to actually agree to it. You can't force someone into mediation or arbitration if there's no agreement to do so. Obviously, the differences and the discrepancies between mediation, arbitration, and litigation can't be explained in the one-minute video. If you have questions or you need help with a mediation, arbitration, or litigation, don't hesitate to reach out. Call us at Kominsky Law. Consultations are always free.