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Mediation vs. Arbitration

November 27, 2024
Jack Fine

Personal injury cases can be stressful, time-consuming, and expensive, especially if they go to trial. Fortunately, alternative dispute resolution (ADR) methods, like mediation and arbitration, offer ways to resolve disputes outside of the courtroom. However, when it comes to mediation vs. arbitration, which is right for your case? Keep reading to learn how each process works, their pros and cons, and what to consider when choosing the best option for your case.  

What is Mediation?

Mediation is a voluntary process that involves a neutral third party, called a mediator, to help both sides in a legal dispute reach a fair agreement outside of the courtroom. Unlike a judge, jury, or arbitrator, the mediator doesn’t make decisions or force a settlement. In fact, the mediator remains entirely impartial as they help the parties involved explore alternative solutions they might not have considered on their own. 

How Does Mediation Work in a Personal Injury Case?

In a personal injury mediation, both the plaintiff and defendant (along with their attorneys, if present) negotiate in a structured, yet more relaxed setting outside of the courtroom. The process begins with both parties sharing their perspectives and needs with the mediator. With each side present, the mediator facilitates respectful listening and open dialogue as they help both parties to understand each other’s position. 

Following this joint discussion, each party will have a private session with the mediator in which they can discuss additional concerns or priorities confidentially. From these conversations, the mediator then works to guide both sides toward a middle ground without revealing any sensitive information in the process. The goal is to help the parties reach an agreement without having to go to trial.

Court Ordered vs. Voluntary Mediation

Mediation can either be voluntary or court-ordered depending on the circumstances of the case. Voluntary mediation is typically initiated before a lawsuit is filed and allows both sides to have more control over the mediator they choose and the mediation process overall. By voluntarily choosing mediation, parties can often solve matters faster and on their own terms. 

On the other hand, once a case is filed, a judge may require mediation to encourage a faster and more cost-effective solution. While court-ordered mediation follows a set process under Florida Statute 44.102, confidentiality rules still protect both sides. If no agreement is reached, the mediator reports an impasse which allows the trial to proceed to trial if needed.    

Pros and Cons of Mediation

Mediation is great for resolving personal injury disputes as it prioritizes open communication and collaboration. However, while mediation has many advantages, it’s important to consider both the benefits and limitations. Below is a breakdown of the pros and cons to help you decide if mediation might be the right path: 

Pros of MediationCons of Mediation
Encourages open dialogueNo guaranteed outcome
Parties control the outcomeNon-binding; depends on voluntary agreement
Can lead to win-win solutionsRisk of power imbalance between the parties
Helps preserve relationshipsLimited legal protection
Confidential and private processRequires both parties to participate willingly
Can save on court costsMediator does not provide legal advice
Generally quicker than litigation

What is Arbitration?

Arbitration is a process where both parties agree to resolve their dispute outside of court by presenting their case to an arbitrator. Unlike mediation where parties work toward a mutual agreement, arbitration puts the decision in the hands of a qualified arbitrator who reviews both sides and issues a binding decision. 

By agreeing to arbitration, both parties waive their right to take the case to court. This process is faster and more private than a trial, but there is typically no option for appeal. 

Binding vs. Non-Binding Arbitration

Arbitration in Florida can be either binding or non-binding. In binding arbitration, the arbitrator’s decision is final and enforceable by law. 

Alternatively, in non-binding arbitration, the arbitrator’s decision is only advisory and not enforceable by law. Under Florida Statute 44.103, non-binding arbitration is authorized as a way to encourage dispute resolution without forcing a final decision. Parties can choose to accept the recommendation or, if unsatisfied, reject it and proceed to trial.

How Does Arbitration Work in a Personal Injury Case?

In many personal injury cases, arbitration happens because of a clause in a contract that requires disputes to be settled out of court. These clauses can make arbitration either mandatory or voluntary:

  • When a contract requires mandatory arbitration, both sides must resolve the dispute through arbitration instead of going to court. 
  • In voluntary cases, both parties agree to arbitration after the dispute has occurred and choose it as an alternative to a court trial. 

The arbitration agreement will specify which organization will handle the process, such as the American Arbitration Association (AAA), JAMS, or the National Arbitration Forum. These organizations provide experienced arbitrators which are often retired judges, expert attorneys, or professionals skilled in specific areas. This not only ensures that decisions are informed and impartial, but it also helps to keep disputes out of the courtroom by providing a fair way to resolve the conflict.   

Pros and Cons of Arbitration

Arbitration can be a practical alternative to court for resolving disputes, but just like mediation, it has its own advantages and limitations. Here’s a breakdown of the pros and cons: 

Pros of ArbitrationCons of Arbitration
Generally less costly than going to courtCan become expensive if non-binding as parties may still go to court
Often faster than traditional court casesNo jury involved; decision is entirely up to the arbitrator
Neutrality; arbitrator is agreed upon by both partiesLimited or no option to appeal, except in cases of legal error
Provides finality, helping parties move on
Confidential 

What is Med-Arb?

Med-Arb combines the flexibility of mediation with the finality of arbitration. In this process, both parties first attempt to resolve their dispute through mediation. If they can’t reach an agreement, they move directly to arbitration with the same neutral third-party action as both mediator and arbitrator. This encourages both sides to find common ground, knowing that if mediation doesn’t work, a binding decision will follow without additional delays. 

The Mediation and Arbitration Process in Florida

In Florida, mediation and arbitration are often favorable alternatives to going to court. Here’s what you can expect if you and the other party decide to go through with mediation: 

  • Both parties sign a mediation agreement and select an acceptable mediator
  • A mediation conference is scheduled within 90 days unless extended by agreement
  • Costs are generally shared equally and cover the mediator’s fee, per Florida Statute 720.311(2)(b)  

If both sides reach an agreement, it is written down and becomes legally binding. However, if no agreement is reached, the court may proceed to court. Failure to participate in mediation may disqualify a party from recovering attorney’s fees in court. 

If mediation does not resolve the issue, or if both parties opt for arbitration instead, the dispute can then move to arbitration: 

  • Arbitrators are chosen from a pre-approved list of neutral candidates
  • A preliminary hearing sets the procedures, including what evidence and expert witnesses will be allowed
  • Filing fees start at $200, and any additional costs are typically shared equally. 

During the arbitration hearing, the arbitrator reviews the case, deliberates, and issues a decision. According to Florida Statute 682.02, the arbitrator’s decision is enforceable unless there’s a valid legal reason to revoke the contract. 

Additionally, per Florida’s guidelines, the chief arbitrator does not have the authority to hold any person in contempt or impose sanctions. In other words, the arbitrator’s role is strictly to oversee the hearing and make a decision without the authority to enforce court-like punishments. 

If the arbitration is non-binding, a party may reject the decision and request a trial within 30 days; otherwise, the decision becomes enforceable in court. 

Get Expert Representation With Fine, Farkash & Parlapiano, P.A. 

Whether through mediation, arbitration, or court, making the right choice can be influential in the outcome of your case. The Gainesville personal injury lawyers at Fine, Farkash & Parlapiano, P.A. are here to help you understand your options and protect your rights every step of the way.

If you’re ready to take the next step, contact Fine, Farkash & Parlapiano, P.A. today. With our expert guidance, you’ll have the support you need to reach a fair resolution and focus on moving forward.  

Sources: 

What is Mediation? | U.S. Department of Commerce

44.102 Court-ordered mediation | The Florida Legislature

44.103 Court-ordered, nonbinding arbitration | The Florida Legislature

Arbitration | The Florida Bar

720.311 Dispute resolution | The Florida Legislature 

682.02 Arbitration agreements made valid, irrevocable, and enforceable; scope | The Florida Legislature

In Re: Amendments To The Florida Rules Of Civil Procedure | Supreme Court of Florida