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    Danielle Contreras
    direct 408.850.7994
    fax 408.850.7993
    danielle@sanjose.com

    What is Mediation and Arbitration

    April 16th, 2008

    Mediation

        Dictionary: 

     1. action in mediating between parties, as to effect an agreement or reconciliation.

       Explanation: 

    Mediation is a non-binding (not lawful) process in which Parties that are in  a dispute meet with a neutral mediator.  The mediator is selected by the parties.  A mediator is a specialist in the field of your dispute, or you can choose a mediator who is a specialist in dispute resolution, or you can choose a mediator who is both an expert in the subject matter of the dispute and an expert dispute resolver.  If the Parties cannot agree on a mediator, the Superior Court shall appoint a mediator. The mediator will try to work out a mutually acceptable resolution. The mediator does not impose a settlement on the Parties. The mediator may conduct more than one session and mediation fees shall be paid equally by participating Parties. Matters excluded from arbitration (Para. 12(b)) are also excluded from mediation. 

    Arbitration  

    Dictionary: 

    1. the hearing and determining of a dispute or the settling of differences between parties by a person or persons chosen or agreed to by them  

    Explanation: 

    Arbitration is a private dispute resolution process in which Parties (by themselves or through their attorneys) submit disputes to a neutral arbitrator who is charged with rendering a fair and impartial decision as to all issues presented.  The arbitrator will be a retired Superior Court judge or a licensed California attorney with at least 5 years real estate experience. If the Parties cannot agree on an arbitrator, the Superior Court shall appoint the arbitratorWhen arbitration is selected, the Parties give up their rights to trial by judge or jury and to full and formal court process.  Rules of evidence and procedure are less rigid than in trial court.Arbitration fees are typically on an hourly basis. The decision of the arbitrator is final and binding on all Parties to the arbitration agreement The arbitrator can award compensatory damages, punitive damages, and/or order specific performance, injunctive relief and declaratory relief. No trial or other court process is available to re-try the case or to appeal the merits of the arbitrator’s ruling. This means that even when a party claims the arbitrator made a clearly wrong decision, based on a misunderstanding of fact or of law or an unwillingness to follow the law, that decision nevertheless remains final and unappealable. Only in cases of actual fraud in the arbitration process, corruption, bias, lack of due process or jurisdiction, or arbitrator’s computation error, can an award be vacated or modified. The Parties are advised to confer with legal counsel for advice before committing to binding arbitration.  

    Exclusions from arbitration include: unlawful detainer (The act of retaining possession of property without legal right.), foreclosure-related actions and matters within Small Claims Court jurisdiction.

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