Two approaches you may hear about are “Arb-Med” and “Med-Arb.” Each one mixes parts of both arbitration and mediation, but in different orders. Let’s talk about what these methods are, and when they might work best.
What Is Arb-Med?
1. Arbitration First: In Arb-Med, the parties start with arbitration. Both sides tell their stories to the arbitrator, who then makes a decision (an award).
2. Mediation Second: But instead of telling everyone the decision right away, the arbitrator sets it aside and tries mediation next. During mediation, everyone tries to reach an agreement by talking through the problem in a friendlier way.
3. Outcome: If the mediation works, the parties have their own agreement. If not, the arbitrator reveals the award from the first step.
Pros:
- The parties might work harder to settle during mediation since they know there’s already a decision waiting.
- They can save time if they settle.
Cons:
- Some people feel stressed knowing an arbitration award already exists.
- Trust issues may arise if the parties worry about bias once the arbitrator sees all sides.
What is Med-Arb?
1. Mediation First: In Med-Arb, the parties start by trying to agree through mediation. They talk, share ideas, and try to solve the dispute peacefully.
2. Arbitration Second: If the mediation doesn’t work, they move to arbitration, where the arbitrator gives a final decision.
Pros:
- This method often feels less threatening since you try to solve the problem together first.
- It can still end with a clear decision if needed.
Cons:
- If mediation fails, it can feel like you’re “starting over” when moving into arbitration.
- The mediator and arbitrator might be the same person, which can cause worry about fairness.
Choosing between Arb-Med and Med-Arb depends on your case and clients. Arb-Med is useful if you want a fast decision but still like a chance to talk things out. Med-Arb is great if you prefer to work together first, while keeping a firm decision ready if you can’t agree. Talk with your clients about these options to decide which path suits their needs best.