Mediation and arbitration are the two most common processes used as alternatives to litigation in the courts.
Mediation is a voluntary settlement process in which the parties to the dispute or lawsuit, with the assistance of the mediator, come to a voluntary agreement on an acceptable solution.
Arbitration is a process, much like a trial, in which the parties present evidence and the arbitrator, an impartial third-party professional, makes a final and binding decision.
Except in the most unusual situations, parties should always try mediation first. If it is unsuccessful, which is highly unlikely, they can then proceed with arbitration or litigation.
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