Mediation arbitration, or med-arb is a combination of both mediation and arbitration. It is an increasingly popular alternative dispute resolution mechanism in which the disputing parties and a third-party neutral, attempt to reach a voluntary agreement through mediation. If resolve is not reached, then the parties move into the more formal procedure of arbitration.
Med-Arb combines the opportunity for a negotiated resolution available in mediation, with the guaranteed finality in arbitration. Med-Arb is comprised of a full mediation session followed by a full arbitration session. It is an excellent process where the parties are looking to a final and binding decision, but would first like the opportunity to discuss the issues involved in the dispute with the other party, with the understanding that at least some of the issues may be settled prior to going into the arbitration process.

Med-Arb is often less costly and more efficient than straight arbitration, since only those issues not resolved by the parties are adjudicated. Using the same neutral party throughout, saves costs and time since that person is familiar with the case and the issues. Statistics show that approximately 95% of all disputes and lawsuits are resolved prior to trial. While interest-based mediation provides the means to explore the issues, should a settlement not materialize (those few issues), then following further submissions by the parties, in a court-like setting, an arbitrated, binding decision will ensue.