Arbitration vs. Facilitation

Attribute	Arbitration	Facilitation
Definition	A legal process where a neutral third party makes a decision to resolve a dispute.	A process where a neutral third party helps parties communicate and reach a mutual agreement.
Role of Third Party	Makes a decision	Assists parties in reaching an agreement
Binding Decision	Decision is legally binding	Agreement is not legally binding unless parties choose to make it so
Formality	Formal process with rules and procedures	Less formal process focused on communication and collaboration
Timeframe	Can take longer due to formal process	Can be quicker due to focus on communication

Introduction

Arbitration and facilitation are two common methods used to resolve disputes outside of the courtroom. While both processes aim to reach a resolution, they have distinct attributes that set them apart. In this article, we will compare the key features of arbitration and facilitation to help you understand which method may be best suited for your specific situation.

Arbitration

Arbitration is a process in which a neutral third party, known as an arbitrator, hears arguments from both sides of a dispute and makes a binding decision. This decision is typically based on evidence presented by each party and is legally enforceable. Arbitration is often used in cases where the parties want a quicker and more cost-effective resolution than traditional litigation.

• Arbitration is a formal process that resembles a trial, with each party presenting evidence and witnesses to support their case.
• The arbitrator's decision is final and binding, meaning that the parties must abide by the outcome.
• Arbitration proceedings are typically confidential, which can be appealing to parties who want to keep their dispute out of the public eye.
• Arbitration can be either binding or non-binding, depending on the agreement of the parties involved.
• Arbitration can be conducted in person or remotely, making it a flexible option for parties who may be located in different geographic locations.

Facilitation

Facilitation, on the other hand, is a process in which a neutral third party helps guide a discussion between the parties to help them reach a mutually acceptable agreement. Unlike arbitration, the facilitator does not make a decision on the outcome of the dispute but instead helps the parties communicate effectively and explore potential solutions.

• Facilitation is a more informal process than arbitration, focusing on communication and collaboration rather than legal arguments.
• The facilitator's role is to help the parties identify their interests and needs and work together to find a resolution that meets those needs.
• Facilitation is often used in situations where the parties have a continuing relationship and want to preserve that relationship despite the dispute.
• Facilitation can be a more time-consuming process than arbitration, as it relies on the parties' willingness to engage in open and honest communication.
• Facilitation is a voluntary process, meaning that the parties must agree to participate and can withdraw at any time.

Comparison

While arbitration and facilitation both offer alternative dispute resolution options, they have distinct differences that may make one more suitable than the other in certain situations. Arbitration is often preferred when the parties want a binding decision from a neutral third party, while facilitation is more appropriate when the parties want to maintain control over the outcome and work together to find a solution.

• Arbitration is a more formal process that resembles a trial, with strict rules of evidence and procedure.
• Facilitation is a more flexible process that allows the parties to shape the discussion and explore creative solutions.
• Arbitration is typically faster than litigation but can still be a lengthy process, depending on the complexity of the dispute.
• Facilitation can be a longer process than arbitration, as it relies on the parties' willingness to engage in open and honest communication.
• Arbitration is often used in cases where the parties want a final and binding decision, while facilitation is more appropriate when the parties want to maintain a relationship and work together to find a solution.

Conclusion

In conclusion, arbitration and facilitation are both valuable tools for resolving disputes outside of the courtroom. While arbitration offers a binding decision from a neutral third party, facilitation focuses on communication and collaboration between the parties. Understanding the key attributes of each process can help you determine which method may be best suited for your specific situation. Whether you choose arbitration or facilitation, both methods offer a way to resolve disputes efficiently and effectively.