Arbitration is the process to select when parties want certainty in having a decision with respect to their dispute. This is one way that arbitration differs from mediation. In a mediation hearing, the parties control their destiny and a resolution is reached by mutual agreement. In arbitration, the parties agree in advance that they will put their respective cases to the arbitrator or an arbitration board and a decision is issued that is final and binding on the parties.
There are several benefits of choosing arbitration. These include certainty, speed and lower costs than in traditional litigation models. By using arbitration, the parties are able to receive a binding ruling on their dispute within a shorter period of time than it would take following the normal court litigation route. Costs are also therefore much lower. The process can be confidential and not part of the public record.