Mediation and Arbitration

Mediation and arbitration are two forms of alternative dispute resolution (ADR) commonly used in Ontario to resolve disputes outside the traditional court system. Both processes offer distinct advantages and are governed by specific regulations in Ontario.

Mediation

Mediation is a voluntary process where a neutral third party, called a mediator, helps the disputing parties communicate and negotiate a mutually acceptable resolution.

Process:

  • The mediator facilitates discussions but does not impose a decision.
  • The process is confidential and non-binding unless an agreement is reached and formalized in a settlement.

Advantages:

  • Cost-effective and faster than court litigation.
  • Parties have control over the outcome.
  • Maintains relationships and confidentiality.

Regulations:

  • Governed by the Ontario Rules of Civil Procedure for certain civil matters.
  • For family disputes, it is governed by the Family Law Rules.
  • Mediation services are available through various organizations, such as the Ontario Mandatory Mediation Program.

Arbitration

Arbitration involves a neutral third party, called an arbitrator, who hears the evidence and arguments from the parties and makes a binding decision.

Process:

  • Parties agree to submit their dispute to arbitration, often through a written agreement.
  • The arbitrator’s decision, called an award, is final and binding, with limited rights to appeal.
  • The process is private and confidential.

Advantages:

  • Faster and more flexible than court proceedings.
  • Arbitrators are often experts in the relevant field.
  • Binding decisions provide finality.

Regulations:

  • Governed by the Arbitration Act, 1991, which outlines the procedures and enforceability of arbitration agreements and awards.
  • The Ontario International Commercial Arbitration Act applies to international disputes.