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Trial and Arbitration are the adversarial system of dispute resolution. This is formal in nature.
Avoidance, Negotiation, Mediation, Conciliation and Lok-Adalat etc. are the Non-Adversarial
mechanism for conflict resolution. These are informal in nature.
Fundamental differences:
1. Adversarial/Non-Adversarial: Arbitration is an adversarial, competitive process whereby
each party presents information, evidence etc. with the aim of ‘winning’ and, consequently, the
other party must ‘lose’.
2. Valuator/Facilitator: Following from the above differences between the two processes, the
role of the third party is also fundamentally different:
The Arbitrator decides the outcome on behalf of the parties and they accept this as binding. They
have no ‘ownership’ of the outcome, this being willingly passed to the arbitrator.
In mediation, the Mediator is explicitly separated from the decision about the outcome, which is
instead, created by the parties with the assistance of the mediator’s facilitation.
3. Expert / Creativity Supporter: Further to the distinction between the roles above, an
Arbitrator needs to have an expertise in the area of dispute being arbitrated, otherwise their
decision will lack credibility.
A Mediator does not need any expertise in the field of dispute as their role is to facilitate
discussion and creative thinking by the parties themselves, who are considered to be the sole
experts in their area of dispute.