Definition

NEGOTIATION

Opposing parties work to
 settle their differences
 on their own.

MEDIATION

Impartial person helps the parties negotiate their
own settlement.

ARBITRATION

Impartial person listens to the opposing parties and renders a binding decision for them.

LITIGATION

Judge or jury render a
 judgment or verdict.

Procedure

  Informal.

Relatively informal process.

Flexible procedural rules,
no rules of evidence.

Formal procedural rules, including rules of evidence.

Control

 Parties control the outcome.

Parties choose the mediator
& control the outcome.

Parties choose the arbitrator
& arbitrator renders decision.

Court appointed judge & judge/jury renders decision.

Confidentiality

 Private.

Private & Confidential.

Private & Confidential.

Public Record.

Discovery
(Information
Exchange)

 Voluntary exchange
of information.

Informal discovery
of evidence.

Limited discovery
of evidence.

Compulsory discovery
of evidence.

Enforceability

Enforceable settlement agreement.

Enforceable mediated agreement.

Awards are final with
very limited appeal.

Verdicts are final
but may be appealed.

Time

 Least time consuming.

Typically completed
within 8-10 weeks.

Typically completed
within 3-4 months.

Most time consuming,
may take years.

Cost

Least expensive.

Typically no more than
10% of the cost of litigation.

Typically no more than
40% of the cost of litigation.

Most expensive.