Unless a contract between the parties requires one form or the other, the parties can agree which form to chose. Binding arbitration is generally a final decision, subject only to limited review by a court as allowed by law. Because of its finality, in Wisconsin, arbitration cannot be ordered by the judge if any party objects to it. The mediator listens to each party's side of the dispute. The mediator then helps the parties talk to each other during the mediation session, identify the issues that need to be decided between them, and reach a settlement that is satisfactory to each of them.
Mediation is a confidential process.
Statements made during a mediation session are generally not allowed to be revealed in any later court proceeding between the parties. Although participating in mediation is completely voluntary, if a settlement results, it is then binding on both parties by their own agreement. Mediators are impartial, and neither advise the parties, who are usually represented by their own lawyers, nor make any decision for the parties. Individuals who serve as mediators may or may not be lawyers, and are trained to provide objective assistance in solving disputes. Mediation is the least formal ADR process, and can be specifically structured to meet the needs of a specific dispute and the parties involved.