An "arbitrator" makes decisions. Arbitration involves each party presenting his or her side of an issue and stating what they are looking for in order to bind an agreement. The arbitrator asks lots of questions to make sure that the case is well understood. And, then, the arbitrator decides the outcome of the case. Usually, an arbitrator's decision is final, and cannot be appealed.

Usually, when I am asked to arbitrate a case, I begin by trying to mediate a resolution between the parties. It is always best if the parties can make the decision between the two of them. No one really wants someone else making decisions for them. But, if I am unable to mediate a resolution between the parties, then I will arbitrate a final decision for them.

When you hire a mediator/arbitrator, you need to make it clear what it is that you want: mediation, arbitration, or a combination. If you and your business partner cannot resolve an issue, you probably will choose to ask a mediator help you find a solution. Arguments over a contract often are constrained by a rule within the contract for resolving disagreements, such as, "Any disputes over the terms of this contract must be resolved through binding arbitration." Such a clause prevents either party from filing a law suit. In other cases taken to court, a judge might order you either to mediation or to binding arbitration.

Litigation, the law suit, involves two opposing attorneys and a judge. It is your lawyer’s duty to try to "win" for you. But, maybe a resolution can be found that is satisfactory to both sides. Shouldn't that be tried, first? In the case of a business deal, isn't it the goal to please both sides? Mediation helps the two sides work together to come to an answer. Instead of taking months, throwing threats back and forth through your attorneys, why not sit down together for an hour or two and work out a solution?

The process: A case can take from one to ten hours to mediate, depending on the issues and - most importantly - how willing the two of you are to negotiate. You will decide ahead of time whether one long session is desired, or if you want to have several shorter sessions spread out over a few weeks. Every case is different, and the timing of the meetings will be decided among everyone involved. Whether your attorneys participate in the negotiations is also something that needs to be decided ahead of time. Ideally, attorneys do not participate - mediation is not viewed as a legal process, per se, but rather a guided discussion between two individuals who want to resolve a dispute.

The savings: Through mediation, answers will be achieved sooner, primarily because there are no time delays between one party asking a question and the other party giving a response (remember, both of you are together in the same room, having a face-to-face discussion). Costs are kept very low, because you are using less of your attorney's time and you are sharing the cost of the mediator.