Arbitration and mediation
What is arbitration?
Arbitration and mediation are two alternative methods for the settlement of disputes, arguments or quarrels. Neither involves going to court, but arbitration is closer to the court process than mediation. During arbitration, both parties present their arguments by themselves, or with the help of lawyers, to an objective third party, the arbitrator, who then gives his/her judgment on the dispute. Neither party can appeal this ruling because it is irrevocable, even more so than a court judgment. Advantages of arbitration over the standard court process are that it is a relatively quick process and that the two parties choose the arbitrator themselves.
What is mediation?
The second method, mediation, is a much more relaxed procedure, where the parties employ a third party to help them reach an agreement or settlement whilst maintaining good relations as far as possible. This method is generally used when two parties have a dispute but still share common interests, or where mediation is preferable to long and costly legal proceedings. Mediation gives the parties more control, allowing them to find more creative solutions than through arbitration or court, where they would be obliged to comply with established and inflexible rules.
When are they used?
Arbitration and mediation are used to solve all kinds of disputes, often concerning contracts, property, international investment or commerce. The disputes may be large or small, and will concern two parties who might be individuals, families, businesses or government departments. Occasionally the two parties could even be countries, for example, when the question arose of whether Taba was part of the Sinai Peninsula or not, Israel and Egypt presented their arguments to an arbitration panel. This arbitration panel held that the Taba area belonged to the Egypt, a decision which was accepted and respected by Israel.
Here is a list of various types of arbitration and mediation:
- Arbitration and mediation for contracts
– for disputes concerning the validity or enforcement of contracts, licenses or agreements. - International Arbitration and Mediation
– generally for disputes relating to trade and investment, but also sometimes between two countries, as in the example above. - Arbitration and mediation for taxes
– for disputes related to taxes and their relevant government departments. - Arbitration and mediation for families
– there are two types of arbitration or mediation for families: (a) for disputes over businesses and (b) for disputes over divorce, division of property, alimony, child custody, inheritance, etc. - Arbitration and mediation for real estate
– for disputes related to the purchase, sale or lease of real estate. - Arbitration and mediation for companies
– for disputes between companies or partnerships. - Arbitration and mediation for insurance
– for disputes concerning National Insurance (social security) or private insurance companies. - Arbitration and mediation in the workplace
– for disputes between employees or between employers and employees.
