1.1. Advantages of arbitration include the level of informality, lower costs, more privacy, and more control than if the dispute were to go to trial. There are no judges and minimal legal fees to worry about, nothing is done in front of a courtroom, and formal policies do not have to be followed like in a trial.
1.2. Disadvantages of arbitration include the inability to appeal the arbitrators decision like in court cases, having to follow the discretion of the arbitrator without any explanation, and the possible lack of formal information for the arbitrator to make a fully informed decision.
2. Arbitrator Qualities
2.1. Communication- Able to communicate clearly and effectively and is a good, active listener.
2.2. Competence- Every arbitrator must have the skills and knowledge, whether through academics or experience, to be able to professionally handle disputes.
2.3. Discretion- Knows how to professionally and discretely handle disputes that are private and confidential.
2.4. Objectivity- A good arbitrator should be able to look at a dispute without choosing sides or putting any personal emotion into the decisions, and then make a decision once all sides are heard.
2.5. Negotiation- Arbitration is a form of dispute resolution which means that two parties disagree on an issue. Being a good negotiator is a great skill for any arbitrator to have.
3. Mediation vs. Litigation
3.1. The advantages of mediation over litigation include total cost, formality levels, and confidentiality. Mediation is often considerably cheaper than litigation because it incurs a lot less in legal fees. This is because mediation is much more informal than litigation as it usually does not go to court. Because mediation usually does not go to court, there is more confidentiality due to the fact that personal information does not have to become public record.
3.2. The disadvantages of mediation in comparison to litigation include there being less formality, less of a set course of action to be taken, and the need to compromise. While informality may be beneficial to some parties, it may be a struggle for others. Some disputes would benefit more from a set course of action like that taken in the courtroom as opposed to an informal compromise. While compromise can be a good solution in certain disputes, the more involved disputes can be hard to get parties to agree on a compromise.
4. Mediator Qualities
4.1. Patience- Able to understand frustrations and create rapport to have a better chance at success.
4.2. Objectivity- Remains completely objective when evaluating the situation at hand, and refrain from any emotions during a session and/or decision making.
4.3. Adaptability- Adapting to the many different types of personalities and environments of a dispute.
4.4. Perseverance- Remains determined to resolve the dispute despite any noncooperation they may face from any of the parties.
4.5. Leadership initiative and personality- Able to see the problem and take initiative by deciding what course of action should be taken and then doing it.
