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Dispute Resolution Methods (Mediation (Mediation is a dispute resolution…
Dispute Resolution Methods
Mediation
Mediation is a dispute resolution method in which the parties are presided over by a neutral third party called a mediator. This party does not provide any suggestions to resolve the dispute or formulate a decision for the parties, but facilitates discussion. The decision reached by the parties is not automatically binding, unless a deed of settlement is signed
Conciliation
Conciliation is a dispute resolution method in which the neutral third party is able to offer suggestions and possible options of dispute resolution to the parties. The decision reached in this method is not automatically binding, however, it can be made binding through signing a deed of settlement
Similarities:
In both methods the third party cannot make decisions for the parties
A deed of settlement must be signed to make the decision binding
Both methods are private and confidential
The methods are cheap and less formal
They can be used in a variety of courts
They are unsuitable for criminal disputes
They are suitable for disputes where the parties have a continuing dispute
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Differences:
In conciliation, the third party is able to offer suggestions or possible options for dispute resolution
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Arbitration
This is a less formal method of dispute resolution compared to judicial determination, but involves a neutral third party that devises an automatically legally binding decision for both parties in the dispute. In arbitration, the amount of damages claimed by the parties must be any amount under $10,000
Similarities between Arbitration, Mediation, and Conciliation:
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All methods are cheaper and less formal than judicial determination
All parties are presided over by a neutral third party
All methods are predominantly used for civil disputes
Differences between Arbitration, Mediation, and Conciliation:
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Arbitration mainly refers to contractual disputes
The decision reached in arbitration is automatically legally binding
Arbitration can only hear disputes of up to $10,000
The arbitrator is a magistrate whilst the mediator and conciliator does not have to be a legal professional
The parties are required to attend the hearing for arbitration whilst they are not required to for mediation and conciliation
Arbitration is suitable for parties that do not have a continuing relationship whilst mediation and conciliation are not
Judicial Determination
This method of dispute resolution is highly formal and costly. The neutral third party, which is a judicial officer, formulates a decision for the parties based on the evidence that they have presented. The parties are strongly recommended to have legal representation and the decision that the neutral third party devises is automatically legally binding and is called a court order
Differences Between Judicial Determination and Other DRM's
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The legal fees are considerably higher
Parties are strongly recommended legal representation
There are strict rules of evidence and procedure
The proceedings are not as formal or confidential as other methods
The binding decision in judicial determination is called a court order whilst in arbitration it is called an arbitration award
Similarities Between Judicial Determination and Other DRM's
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All methods have a neutral third party representative preside over the case
All methods allow for legal presentation for the parties
The neutral third party takes in all of the evidence presented by the parties and thus formulates a decision based on the evidence
A binding decision can be eventually made through all methods. This can be either automatically binding through judicial determination and arbitration, or by signing a deed of settlement such as in mediation or conciliation
All methods of dispute resolution require that the parties are in attendance to decide the compromise or resolution