How Does Arbitration Differ From Mediation and Civil Litigation?
Reprinted From Houston Business Journal, May 7, 2004 In an attempt to control litigation costs, many companies are looking to employ alternative dispute resolution mechanisms – commonly referred to as “ADR” – to avoid the courthouse. Two of the most commonly used ADR mechanisms are mediation and arbitration. Mediation is a voluntary process in which the parties use an objective third-party facilitator to try to negotiate a resolution to their dispute. Arbitration, however, results in a binding decision that the parties can seek to enforce through the courts. Here are a few things you should know about arbitration before embarking on this means of resolving a business dispute. The Governing Law of Arbitration As stated above, arbitration is binding, and parties can seek to enforce a decision through the courts. For arbitration proceedings in Texas, either the Federal Arbitration Act (FAA) or the Texas Arbitration Act (TAA) will be the governing law. The FAA can be applicable only if the
