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Both arbitration and mediation used as means of resolving the faction between parties without addressing to the judiciary. However, they have various differences and applicable in different cases.

Arbitration is a method of dispute resolution, which involves a neutral arbitrator’s supervision and decision-making along the considering the case. Mostly it’s held in informal conditions and changeable schedule.

During the process arbitrators usually strive to look for a peaceful solution on the documents for the disputants. The final hearing, being held at the office or conference room, obliges the parties to follow the arbitrament. If one of the parties ignores the decision then the case may be given to the hall of justice by the other party.

Mediation is an informal dispute resolution method in which a neutral mediator moderates the negotiations between the parties on their disagreement face to face. It differs from the arbitration by the fact that both parties should consent on and participate in the meeting. Its main use is to achieve an out-of-conflict resolution of the argument through a monetary or other kind of settlement.

The choice depends on the particular features of your case. If your contract states the resolution of all arguments through arbitration, then you should apply arbitration.

On the other hand, if you don’t want to disclose your dispute to the public or if you want to prevent formal court procedures and sure that you can reach the agreement with the other party, mediation is probably a better choice. Usually it turns out to be cheaper than two other options.

Mediation both with arbitration is expected to guaranty confidentiality of the case. It is recommended to consult with a lawyer, if possible, before choosing a better method of dispute resolution.