Miami, FL commercial litigation attorney Robert Zarco shares his advice for clients with regard to Arbitration versus Mediation. Mediation, arbitration, and litigation constitute distinct forms of alternative dispute resolution (ADR). He explains that mediation, arbitration, and litigation represent distinct approaches to alternative dispute resolution (ADR). In mediation, parties work with a neutral facilitator—often an experienced attorney or retired judge—who guides them toward a mutually agreeable resolution without issuing binding decisions. Litigation, by contrast, occurs when disputes cannot be resolved through other means, leading to formal lawsuits, court involvement, and a comprehensive legal process overseen by a state or federal judge.

He notes that arbitration is often promoted as a cost-effective and efficient alternative, with a private arbitrator handling the dispute rather than a government-employed judge. However, arbitration can still be expensive, and its procedures may closely resemble complex court proceedings, often limiting the ability to appeal. This combination of potential cost and restricted recourse can disproportionately affect parties with limited financial resources.