Mediation vs Arbitration
Mediation vs. arbitration: what is the difference?
In mediation, the parties keep control over whether and how to settle. In arbitration, an arbitrator may hear the dispute and make a decision. Mediation is negotiation support; arbitration is closer to a private decision process.
Last updated May 2026
Key Points
The short version.
- Mediation is party-controlled
- Arbitration is decision-maker-controlled
- Mediation does not produce a decision unless parties agree
- Arbitration may produce an award depending on the agreement and process
- Legal advice should come from counsel before choosing a process
When mediation fits
Mediation can be useful when people want privacy, flexibility, and control over settlement terms. It works well when the parties are willing to negotiate but need structure.
Mediation can also help parties discuss options a court or arbitrator may not be able to design for them.
When arbitration fits
Arbitration may fit when the parties need a decision from a private third party rather than a negotiated agreement.
Whether arbitration is required, binding, private, appealable, or appropriate depends on contracts, law, and legal strategy. Parties should ask counsel.
Frequently asked questions
These answers explain mediation generally. They are not legal, financial, tax, insurance, claims-handling, valuation, business, therapeutic, mental health, or parenting advice.
Is mediation cheaper than arbitration?
It can be, but cost depends on the dispute, professionals involved, preparation, and process. Mediation often focuses on settlement before a full decision process is needed.
Can parties mediate before arbitration?
Often yes, depending on the contract, timing, and the parties' agreement. Counsel should advise on any required dispute resolution steps.
Related Services
Connect this answer to the right process.
Mediation looks different depending on the dispute. These pages explain Flannel People Mediation's core service areas.