Lutfi Law
ADR

Arbitration or mediation: which fits your dispute?

Both keep a dispute out of court, but they work very differently. Here is how they compare and how parties choose.

Arbitration ends with a decision

In arbitration, the parties appoint a neutral arbitrator, or a tribunal of arbitrators, who hears both sides and issues a written, reasoned award. The award is binding, and courts generally enforce it. Arbitration can be run under institutional rules or ad hoc, and the parties can agree on the language, the seat and the procedure.

Mediation ends with an agreement, or none

In mediation, a neutral mediator helps the parties talk, understand each other's interests and look for a settlement. Nothing is imposed. If the parties agree, they record the terms in a settlement agreement. If they do not, they keep their other options.

Three questions that help parties choose

  • Do you need a final decision? If yes, arbitration gives certainty. If a deal both sides can accept is enough, mediation may be faster.
  • How important are cost, speed and confidentiality? Both processes are private, and mediation is usually quicker and less expensive.
  • Will the parties keep working together? Mediation can help preserve commercial, employment and sporting relationships.

Using both

Many contracts provide for mediation first, then arbitration if the dispute is not resolved. This "step" approach gives the parties a chance to settle before a decision-maker is involved.

Lutfi Law ADR

Lutfi Law ADR acts as a neutral arbitrator, mediator and investigator in commercial and sport disputes, for parties worldwide, in English and Arabic. Every appointment starts with a conflict check and disclosure.

General information, not legal advice. Every situation is different. Book a consultation to talk about yours. Initial consultation free for employment and human rights matters.

Last reviewed: October 2026 · Lutfi Law

ADR

Quick answers

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Is an arbitration award binding?

Yes. An arbitration award is binding on the parties, and courts generally enforce it, subject to limited grounds of challenge.

Can mediation and arbitration be combined?

Yes. Many contracts require mediation first and arbitration only if the dispute is not settled.

Talk it through with a lawyer.

Initial consultation free for employment and human rights matters.