Advantages and Disadvantages of Arbitration and Mediation
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Dementian Guschov is the president and CEO of Andover Group and has over 30 years of experience presiding over hundreds of mediation and arbitration cases in construction, engineering, and design industries. Mediation allows parties to settle issues without litigation but they can withdraw at any time, while arbitration has a binding decision from the panel. Mediation tends to be faster but more personal, while arbitration is more formal like a courtroom but can provide a one-sided ruling.
Advantages and Disadvantages of Arbitration and Mediation
- 2. Dementian Guschov is the president and chief executive officer of Andover, Massachusetts’ Andover Group. Over the course of a 30-year career, Dementian Guschov has presided over mediation and arbitration processes for hundreds of cases in the construction, engineering, and design industries. The most significant advantage of both arbitration and mediation is that participants have the opportunity to settle their issues without entering into litigation. However, the processes differ in many ways, each featuring their own benefits and drawbacks.
- 3. Mediation is largely controlled by the parties in conflict, with either side being provided the chance to abstain from the process and enter into litigation at any time. Arbitration is usually more binding, and the arbitrator or arbitration panel can force a decision in the way that a judge or jury would during litigation. Those who chose to engage in mediation often benefit from an expedited outcome, whereas arbitration can last however long the panel of arbitrators determines. Mediation does present some disadvantages in comparison to arbitration. Mediation takes on a more personal tone and involves both sides sharing their emotions and suggesting creative solutions to the problems at hand.
- 4. This may work for some, while others prefer the more formal presentation of arbitration, which involves all speakers testifying under oath as they would in a court room. Furthermore, mediation is generally sought out by parties looking for a mutually beneficial outcome. However, when individuals or businesses feel entitled to a one-sided decision in their favor, arbitration is a better way to go.