In response to a reader who asked, I thought I'd share this. Thanks to my fellow ZIP associate Eric Sagaspe
Litigation is formal.Can be lengthy, expensive, and the final decision is legally binding and can be used as a precedent, which means all your neighbors with the same issues will either thank you or hate your guys, depending. The Judge decides based on established case Law. Attorneys are usually involved. Is public record. Can be appealed.If you have the time and money to pay your trial attorney. Costs for trial usually run about $40,000 for a ten day trial.
Arbitration is less formal, can be binding or non-binding, arbitrator decides based on law and fairness, attorneys are usually involved. Usually, but not always confidential. It's like renting a judge for a mini trial (except it doesn't have to be a judge). Often doesn't save money over litigation. Decisions are called "Awards" and cannot be appealed. If they're binding they can be enforced in a court of law. Settlement amounts tend to be smaller than in litigation cases.
Mediation is an informal meeting, rules of evidence don't apply, quick resolution (usually 3-5 hours), parties decide on the agreement, not based on law, the only limit to resolution is the parties' imagination, relatively inexpensive (typical rate is $300-$500/h split between the parties), it's highly confidential, attorneys may or may not be involved.
Now hopefully you see the value in us insisting you sign the mediation clause in the offer contract.
