How is mediation different from arbitration?

Mediation uses a neutral third party to help the disputing parties reach their own voluntary agreement, with no power to impose a binding decision. Arbitration, by contrast, results in a decision the arbitrator imposes on the parties, similar to a court judgment. Mediation only succeeds if both sides actually agree to a resolution; arbitration produces an outcome regardless of whether either side likes it.

Why is confidentiality important in a mediation agreement?

Confidentiality encourages both sides to speak candidly and explore compromise positions during mediation without worrying that concessions or admissions made in the process will later be used against them if mediation fails and the dispute proceeds to arbitration or litigation. Without that protection, parties tend to negotiate far more guardedly, which undermines the whole purpose of mediation.

What happens if mediation doesn't result in a settlement?

The parties remain free to pursue arbitration or litigation, since mediation is generally non-binding and doesn't produce an enforceable outcome on its own unless the parties reach and sign a settlement during the process. Many contracts require mediation as a mandatory first step precisely because it resolves a meaningful share of disputes before they escalate to a more costly or adversarial process.

Litigation & Disputes

Mediation Agreement

Establishes the framework for resolving disputes through mediation, where a neutral mediator helps parties reach a voluntary settlement.

Overview

Establishes the framework for resolving disputes through mediation, where a neutral mediator helps parties reach a voluntary settlement.

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Who Needs This Document?

Parties in commercial disputes, divorcing couples, neighbors in property disputes, and businesses preferring collaborative resolution.

When Do You Need This?

Useful before resorting to arbitration or litigation. Often required as a first step in many commercial contracts and employment agreements.

Key Provisions

A well-drafted document should include the following essential provisions:

Selection of mediator and mediation rules
Confidentiality of mediation proceedings
Cost sharing and settlement documentation procedures

Frequently Asked Questions

How is mediation different from arbitration?: Mediation uses a neutral third party to help the disputing parties reach their own voluntary agreement, with no power to impose a binding decision. Arbitration, by contrast, results in a decision the arbitrator imposes on the parties, similar to a court judgment. Mediation only succeeds if both sides actually agree to a resolution; arbitration produces an outcome regardless of whether either side likes it.
Why is confidentiality important in a mediation agreement?: Confidentiality encourages both sides to speak candidly and explore compromise positions during mediation without worrying that concessions or admissions made in the process will later be used against them if mediation fails and the dispute proceeds to arbitration or litigation. Without that protection, parties tend to negotiate far more guardedly, which undermines the whole purpose of mediation.
What happens if mediation doesn't result in a settlement?: The parties remain free to pursue arbitration or litigation, since mediation is generally non-binding and doesn't produce an enforceable outcome on its own unless the parties reach and sign a settlement during the process. Many contracts require mediation as a mandatory first step precisely because it resolves a meaningful share of disputes before they escalate to a more costly or adversarial process.

Mediation Agreement

Overview

Who Needs This Document?

When Do You Need This?

Key Provisions

Frequently Asked Questions

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