1. Mediator Qualifications
1.1. Experience: In order to become a mediator an individual must possess the on-the-job experience. Most employers require 6 years or more of experience or education may be substituted in lieu of experience
1.2. Training: varies depending on state
1.3. Education: Bachelor's degree; some employers or states may require a master's degree or Juris Doctor (J.D.)
1.4. Qualities: "Physical condition adequate for performance of the work; better than average physical and mental stamina; imagination, emotional stability, objectivity; personal reputation above reproach;impartial attitude and ability to maintain it in the interpretation of contract disputes, and in the analysis of facts and evidence presented."
1.5. Licensing: varies depending on state
2. Mediation
2.1. Advantages
2.1.1. Privacy is a huge advantage to mediation. Proceedings and results of the mediation are not available to courts as public record for example. Mediation is also nonbinding.
2.1.2. Cost considerably lower than retaining an attorney to go through legal proceedings. The only way to not save money is if resolving the issues are not successful. You reach resolutions fast.
2.1.3. The process attempts to preserve the relationships between the parties.
2.2. Mediation is a procedure in which the parties discuss their disputes with the assistance of a trained impartial third person(s) who assists them in reaching a settlement.
2.3. Disadvantages
2.3.1. While we know that privacy is important in mediation, being accused of something publicly could potentially hurt a business especially if it is a small or new business or depending on the accusation.
2.3.2. Mediation requires cooperation from both parties. Working towards a resolution is what both parties ideally want but the question is can they do this amicably?
2.3.3. Mediation does not necessarily save time or money. Mediation typically lasts for 3 or 4 hours depending on if each party can agree to the terms.
3. Arbitration
3.1. Advantages
3.1.1. Quicker dispute resolution than courts. Limited discovery helps to reduce the costs of a resolution.
3.1.2. Parties can agree to keep the resolution confidential.
3.1.3. Arbitration is usually a lot less expensive and sooner.
3.2. Arbitration is a private process where disputing parties agree that one or several individuals can make a decision about the dispute after receiving evidence and hearing arguments.
3.3. Disadvantages
3.3.1. If arbitration is binding, both sides give up their right to an appeal. I either party believes that something was done in error, there is no way to go back an correct the issue.
3.3.2. An arbitrator is required to follow the law however some matters may not follow clear and concise guidelines.
3.3.3. Lack of formal discovery. Many times arbitration is not agreed to until after the parties are already in litigation and discovery is completed. By that time, the opportunity to avoid costs by using arbitration may be diminished.