Mediation and arbitration are two approaches to resolving disputes in Alberta. Their central difference is who decides the outcome: in mediation, the parties work toward their own agreement; in arbitration, a neutral decision-maker hears the dispute and generally makes a binding decision.
Understanding that difference helps you ask better questions before choosing a process or contacting a practitioner. This guide introduces the processes; it does not determine which one is suitable for a particular dispute.
Mediation and arbitration at a glance
| Question | Mediation | Arbitration |
|---|---|---|
| What does the practitioner do? | Helps the parties communicate and negotiate. | Considers evidence and arguments, then makes a decision. |
| Who decides the outcome? | The parties decide whether to agree. | The arbitrator decides the issues submitted. |
| What is the intended result? | A mutually agreed settlement. | An arbitration award. |
| Is the result binding? | A concluded settlement agreement can be binding; the mediator does not impose a settlement. | Most arbitration is designed to produce a binding decision. |
| What should you clarify first? | Participation, confidentiality, fees and how a settlement will be documented. | The agreement, applicable rules, issues to be decided, fees and legal consequences. |
What is mediation?
A mediator is a neutral person who helps participants discuss a disagreement and explore possible solutions. The mediator does not decide who wins or require the parties to accept particular settlement terms.
The ADR Institute of Canada’s explanation of mediation distinguishes the negotiation process from its result: a voluntary settlement becomes binding when the parties conclude a settlement agreement.
Mediation can provide room to discuss practical arrangements and ongoing relationships. For example, two business owners might explore a revised payment schedule or clearer responsibilities. This is an illustration of a possible discussion, rather than a prediction of what mediation will achieve.
Before starting, ask how the sessions will work, who has authority to agree, what confidentiality provisions apply, and how you can obtain independent legal advice.
What is arbitration?
An arbitrator is a neutral decision-maker who considers the evidence and arguments presented and decides the issues within the arbitration’s scope.
The ADR Institute of Canada explains that most arbitration proceedings are designed to be binding. Arbitration commonly arises through an existing contract or an agreement made after a dispute develops.
Agreeing to arbitration is different from agreeing to the eventual outcome. Before committing, clarify what the arbitrator can decide, which rules and legislation apply, and what rights may exist to challenge or enforce an award. A lawyer can explain those consequences for your circumstances.
Is mediation or arbitration faster and less expensive?
Ask for an estimate based on your actual dispute. Neither process comes with a guaranteed price or completion date.
The ADR Institute of British Columbia’s FAQs explain that arbitration can, in some circumstances, be as costly and time-consuming as litigation. How documents, evidence and hearings are handled can affect the work involved.
Ask about preparation time, session or hearing fees, deposits, cancellation terms, expenses and how costs will be divided. If mediation does not resolve every issue, ask what the next stage could cost as well.
Can mediation and arbitration be combined?
Yes. Mediation-arbitration, usually called Med-Arb, combines an opportunity to negotiate with a process for deciding unresolved issues.
Alberta Municipal Affairs describes Med-Arb arrangements in which the transition is established at the outset. Its guidance also identifies different practitioner arrangements and questions about which information may be used during arbitration. See its dispute resolution approaches.
For more detail, read What Is Med-Arb in Alberta?.
Questions to ask before choosing a practitioner
- What experience do you have with disputes like ours?
- What training, designations and professional memberships do you hold, and how can we verify them?
- How do you check for conflicts of interest?
- What agreement and rules would govern our process?
- How will confidentiality and any separate meetings be handled?
- What is the likely schedule, and what preparation is expected?
- What fees and additional expenses should we budget for?
- Should we obtain legal advice about deadlines or existing contract obligations before proceeding?
Find mediators and arbitrators in Alberta
Browse Alberta mediators and Alberta arbitrators to compare profiles, practice areas and credentials. If you are exploring a combined process, visit the Med-Arb practitioner category.
Contact practitioners directly to confirm their services, availability, fees and suitability. A directory profile is a starting point for comparison; verify credentials and process details independently.
This article provides general information about dispute resolution. It does not provide legal advice or recommend a particular process for a specific dispute.