What Is a Hybrid Mediation-Arbitration?

Sometimes parties want an opportunity to mediate before proceeding with arbitration.

The two proceedings can occur separately, using different neutrals and different dates. Another option is a hybrid process in which the same neutral first serves as mediator and, if mediation does not result in settlement, immediately transitions to the role of arbitrator.

The advantage is efficiency. If mediation produces a complete settlement, arbitration is unnecessary. If mediation reaches an impasse, the parties can proceed directly to arbitration without scheduling an entirely separate proceeding.

However, this approach creates an important confidentiality issue that must be addressed before the process begins.