Video: What is the difference between mediation and arbitration?
Mediation is a form of dispute resolution. Arbitration is a form of litigation. In mediation, the parties are put into a room with a third party, whether it be a former judge or a lawyer, who have received dispute resolution training in an effort to bridge the gap between parties and see if a settlement can be reached. Arbitration is a private court. You're paying for the privilege of having an arbiter or a panel of arbiters determine your case as judge and jury. Arbitration is expensive, but it's also less formal than court and typically is faster than going to court. Either way, consult an attorney and make sure you have good representation whether you're in mediation or in arbitration.