Med-arb is a hybrid dispute resolution process. It combines mediation and arbitration into one agreed path so that a dispute can move from a voluntary discussion to a binding decision without starting over.
How med-arb works
- Agreement: The parties agree in advance, often in a contract, to try mediation first and arbitrate any issues left unresolved.
- Mediation: A neutral helps the parties negotiate a settlement.
- Arbitration: If issues remain, a neutral arbitrator decides them, and the decision is binding.
Benefits
- Certainty: The dispute will end with a result.
- Efficiency: Evidence and positions are already organized when arbitration begins.
- Flexibility: Parties can settle some issues and arbitrate others.
Concerns to consider
If the same person acts as mediator and arbitrator, the parties may hold back in mediation for fear that private statements will influence the final decision. Many programs address this by using two different neutrals, or by getting written consent from all parties first.
When med-arb makes sense
It suits commercial contracts, partnership disagreements and other relationships where you want a chance to settle but also need a guaranteed outcome. You can build it into your agreement using clause language like the examples in our sample arbitration clauses.
A simple alternative
You can get a similar result without a formal med-arb clause by trying online mediation first and moving to online arbitration if talks fail.
