Friday, March 11, 2016

Mediation & Arbitration



Mediation & Arbitration
Mediation and arbitration are two very important similar tools when it comes to unresolved conflicts. The majority of people think of two married people going through a divorce when they hear the two words used however that’s not always the case. Many businesses and contracts are finalized through mediation and arbitration. Both involve an impartial third party participant who assist in resolving the conflict by managing the communication, however; mediation generally takes place prior to arbitration because of legalities. “Mediation is meant to facilitate communication, promote party-created solutions, and help clarify issues—all with the assistance of a neutral third party (Bennett, 2014)”. Arbitration is completed in private less formal setting but is like court.


Since the most commonly thought of idea of mediation and arbitration is divorce I will use that as we compare the function, role, and effectiveness of each style of conflict resolution. Both mediation and arbitration have the same intent on reaching a mutual agreement that both parties are accepting of. Mediation would be used by a couple who have no children and are having a hard time dividing up martial assets such as the house, cars, and money. Arbitration would be used if that same married couple had children and wanted a legal binding document that outlined the rights that the parents have with the kids. If the parents are capable of working together then arbitration would be better suited than court for child custody and child support agreements because both parents could include what was best for them as well as the kids.
If those same parents were unable to reach a decision then it would be taken before a formal court where the judge would determine what was best for the children regardless of how it affected the parents. It is best for all parties involved if they utilize a mediator or arbitration to reach a desired goal. However, somethings that require historical and legal arrangements require arbitration. One difference in the mediation and arbitration that can also be taken into consideration when determining which to use is cost. (Bennett, 2014) Mediation is cheaper than arbitration, yet arbitration is cheaper than paying lawyer fees and court cost.
In order to bust the myth of mediation and arbitration I look to the example used in our text. A father sets his son and his sons friends down at the table to settle an argument. (Cahn & Abigail, 2014) How many times as parents have you had to do this? Thinking back, you have mediated more than what you imagined. Daily with four children at home mediation always takes place. I like to think of myself as the mediator and my wife as the arbitrator. The kids are home all day with her so once momma lays down the decision things are a little more final than if I step in and try to settle a sibling dispute.  Although that is a very simplistic way to view it, it holds true.
The same can be said at the work place. Many companies have conflict resolution sessions that involve a mediator or arbitrator. One company that specializes in this is the American Arbitration Association.
“The American Arbitration Association (AAA), is a not-for-profit organization with offices throughout the U.S. AAA has a long history and experience in the field of alternative dispute resolution, providing services to individuals and organizations who wish to resolve conflicts out of court. The Association also provides elections services as well as education, training, and publications for those seeking a broader or deeper understanding of alternative dispute resolution.”(AAA, 2016)
Basically this association can help in finding an arbitrator or mediator for your specific matter and ensure not only is your conflict resolved but file all legal documents if the arbitration method is used. This is will be a very beneficial website and organization for me in the future. Since I plan to start my own real estate investment business there will be times where mediation just won’t cut it. Some instances will require arbitration because of legal documentation. This association will be able to assist be certified individuals who can navigate through the court systems and legal documents to help resolve a conflict if one arises.
The question arises, why would I need an arbitrator for a real estate investment business? In the event that I have a tenant in one of rental properties who gets hurt and decides to sue me I can call upon the AAA for assistance. This would not only save my tenant money but keep things less formal while we work through the dispute. Another overall accomplishment of the AAA is that they can decrease the amount of people suing one another. Often, civil court gets back up but if people were to use arbitration the conflict would be settled faster and cheaper.
The drawback in using mediation is that although a goal may be achieved there is no legal binding documentation. Therefore, the conflict could arise again and be drug out until it either gets resolved again moves to the next level. If moved to the next level arbitration begins. Although a useful tool in conflict resolution it does have a major downfall. If arbitration is used “A neutral third party considers both sides of a dispute and makes a decision, which is more binding than that of a judge in the legal system if both parties have agreed in advance to abide by the decision.(Cahn & Abigail, 2014)” This mean that no appeal is possible. Now a legal document has been filed and the decision cannot be altered.
These two conflict resolution methods are very beneficial if used properly. As parents we mediate all the time. Teachers, bosses, and referees mediate as well. We just fail to truly look as mediation for what it is. An impartial third party involved in a decision making process. Arbitration is less commonly used but it is important to understand it fully before using. Although a very use tool it does have a major drawback. In the end, to resolve a conflict you must first understand the principle in which the conflict was founded; and then have the knowledge of which method to use to achieve the desired goal.
References
American Arbitration Association(AAA).(2016) Retrieved from https://www.adr.org/aaa /faces/s/ about?_ afrLoop=467413452008300&_afrWindowMode=0&_afr WindowId=_new#%40%3F_afrWindowId%3D_new%26_afrLoop%3D467413452008300%26_afrWindowMode%3D0%26_adf.ctrl-state%3D18tjgvwdf2_50
Bennett, S. C. (2014). MODELS FOR USE OF MEDIATION IN E-DISCOVERY. Tennessee Journal of Law & Policy, 9(3), 336-356.
Cahn, D. D., & Abigail, R. A. (2014). Managing conflict through communication (5th ed.). Boston, MA: Pearson Education, Inc.

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