Mediation is the process oriented on resolving a dispute led by a neutral person, who is not entitled to make a decision and supports the parties to resolve a dispute. In the mediation process the parties are guaranteed with such privileges as confidentiality and voluntary. As at the stage of referring to mediation, also during the mediation process the decision is based upon the parties’ agreement.
Mediation is more economical and quicker comparing to other traditional formal processes. Mediation is an informal process and therefore there are no mandatory rules established by legislation on fees and terms. The parties in agreement with the mediator determine the mediation price and duration.
The parties have the opportunity to determine the mediator and in which form the process will be led. Also, the legal force of the agreement is depended upon the parties’ decision. The success of mediation is precisely determined by procedural flexibility of the mediation process conducted by the parties’ interests and needs.
The arbitration is a non-judicial, private process of dispute resolution in which a third independent person makes a decision. Arbitration process can be tailored to suit best interests and needs of the parties.
The parties are capable to choose an arbitrator, which is best able to provide the most appropriate dispute resolution in accordance with her/his expertise and qualifications. The parties choose the arbitrator based on free will taking into account their qualification and the peculiarities of the dispute. In addition to that, one more advantage of arbitration considers its confidentiality. Arbitration is faster and cheaper than the court and arbitration center service guarantees its enforceability. The arbitration award is binding for the parties. The advantages of arbitration are also the flexibility of the process, efficiency, speed and the finality of arbitration award.
Combination of mediation and arbitration is one of the innovative forms of alternative dispute resolution known as Med-Arb and is considered as an effective and reliable method of dispute settlement. Med-Arb is especially beneficial for the dispute parties, who are trying to avoid binding court procedures. Med-Arb suggests the parties to resolve dispute on beginning stage through mediation and in case of fully unresolved or certain unresolved issues settle under arbitration proceedings.
By means of Med-Arb process the parties are guaranteed that at the end of the process all controversial issues shall be resolved. Through Med-Arb to parties are given more opportunity and choice to resolve disputes. During the mediation process the parties have greater chance to express their opinions in full and openly, what is achieved by the coherence of a qualified neutral third person. It is acknowledged that disputing issues resolved by the parties themselves grant more satisfaction. In the course of the process, it is depended on the parties’ will or on the complexity of the issues if the dispute fully or partially will be resolved under arbitration proceedings. The arbitration is considered as a trial and the parties might prefer that certain aspects to be decided under formal proceedings. That is why the combination of mediation and arbitration offers a unique opportunity for the parties to resolve the disputing issues under binding or non-binding procedure according their considerations.
Negotiation is the most common form of dispute settlement in the world. Through negotiations can be resolved small and big disputes and it can as simple also difficult process. People constantly negotiate. It is the most common form of human relations. It may take place between the parties or its representatives. Negotiations can be either official or unofficial. It can be performed by oral, written or e-mail, but legal dispute usually combines all of these communications.
The negotiation costs are low compered to any other method of dispute settlement. Negotiations can be completely confidential. The process takes place only with the participation of the parties or its representatives. The process of negotiations is flexible in terms of its progress and its outcome. Through the negotiations can be resolved the issues in a very straightforward and efficient way. The negotiations offer full control over the process and its results. The parties determine how negotiations will be held and whether or not the agreement will be reached. Negotiations allow the parties to settle a dispute and maintain existing relationships, what is especially important for the complex business relationships success.