What factors generally encourage parties to choose mediation rather than arbitration?

Choosing mediation over arbitration is often influenced by the desire for confidentiality and a collaborative atmosphere. Mediation is fundamentally designed to facilitate dialogue between the parties involved, allowing them to work together toward a mutually acceptable resolution. This process tends to promote a less adversarial and more cooperative environment compared to arbitration, where decisions are made by an arbitrator in a more formal setting.

The aspect of confidentiality is particularly significant in mediation, as the discussions and proposals made during the process are generally not disclosed outside the mediation session. This encourages open communication and a willingness to explore creative solutions without the fear that anything said can be used against a party in subsequent legal proceedings. Conversely, arbitration typically leads to a public record of the proceedings and the final decision, which is not aligned with the preferences for privacy that many parties seek.

In contrast, needing a legally binding document is characteristic of arbitration, where the arbitrator's decision is final and enforceable in court. The complexity of legal matters can impact the decision-making process but doesn't necessarily steer parties toward mediation; it might instead suggest arbitration for a more streamlined decision by a legal expert. Lastly, formal court records are associated with arbitration rather than mediation, which is inherently more informal. These distinctions highlight why the desire for confidentiality and a collaborative