medarb

Med-arb is a hybrid dispute-resolution process that combines mediation and arbitration, typically conducted by a single neutral who serves as both mediator and arbitrator. The process starts with a mediation phase in which the mediator facilitates settlement discussions with the goal of resolving all or most issues voluntarily. If the parties reach a full settlement, the outcome is a binding agreement. If no complete settlement is achieved, the same neutral proceeds to arbitration on the unresolved issues and issues that remain in dispute, delivering a final and binding award.

The scope and procedures of med-arb are generally determined by the parties in a written agreement. Common features include confidentiality of communications, control over the selection of the mediator-arbitrator, and a defined sequence that moves from mediation to arbitration if necessary. Some forms allow the mediator’s confidential notes or settlement proposals to influence the arbitration, while others keep mediation discussions confidential and separate from the arbitration record. The mediator-arbitrator’s authority is typically limited to the issues designated as unresolved, with the goal of finalizing the dispute efficiently.

Med-arb is used in various contexts, including commercial, construction, employment, and professional-liability disputes. Benefits often cited include faster resolution, cost savings, and the potential to preserve business relationships through continued dialogue. Potential drawbacks include concerns about perceived bias when the same person mediates and arbitrates, and the suitability of the process for cases with significant power imbalances or complex legal questions.