Mediation and Arbitration

Effective dispute management begins with choosing how the dispute should be handled.

Disputes rarely develop around a single legal question. In many cases, they involve differences of interpretation, conflicting interests and, at times, communication that has broken down along the way. When a matter proceeds directly to litigation, the parties’ control over the process and its outcome may become more limited, and the proceedings themselves can become lengthy and burdensome. Mediation and arbitration offer a different way to manage a dispute – through an organized review of the issues, a clear understanding of their implications and a process that is better suited to your interests. We accompany the process from the outset, helping ensure that each stage is handled carefully and that every decision is made with a clear understanding of its consequences.

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Not every dispute has to reach court.

When a dispute arises between parties to a transaction, between partners or within an existing relationship, many assume that the next step must be court proceedings. In practice, there are cases in which it is possible to pause earlier, understand the points of disagreement and manage the matter in a more controlled way that may lead to a more efficient resolution. If this is not examined in time, the dispute may deepen — legally and financially. We assist in identifying the core issues in dispute and assessing whether the matter can be managed more effectively at an early stage. Sometimes, the right way to resolve a dispute is not to fight it, but to manage it correctly. Mediation and arbitration give parties an opportunity to address the dispute more efficiently, while maintaining greater control over the process.

Mediation: Control over the process and the agreement.

Mediation is a voluntary process for resolving disputes outside court, in which a neutral mediator assists the parties in reaching an agreement. The mediator does not have authority to decide the dispute. The solution is shaped by the parties themselves. The process is based on direct dialogue. It is confidential, flexible, usually faster and often more cost-effective than litigation. However, mediation also requires precision: an understanding of the rights involved, the risks and the implications of every agreement reached. We accompany the process to help ensure that the agreements are clear, practical and do not create future difficulties.

Arbitration: when a decision is required.

When agreement cannot be reached, but the parties wish to avoid lengthy court proceedings, arbitration may be appropriate. In arbitration, the decision is entrusted to a professional decision-maker within a process that is usually faster and more flexible than litigation. Unlike mediation, arbitration results in a binding decision. We assist with choosing the appropriate route, managing the procedure and presenting your position in an organized and clear manner.

The difference between mediation and arbitration.

In both mediation and arbitration, the way the process is managed has a direct effect on the result. Unclear agreements or arguments that are not presented properly may create problems later on. David Sofer Law Offices has experience advising clients in mediation and arbitration proceedings, including real estate disputes and civil and financial disputes. Attorney David Sofer is a certified mediator and has served as an arbitrator and mediator in complex disputes. This experience allows the process to be managed in a focused manner and helps promote solutions that may avoid prolonged litigation and unnecessary costs.

Advantages of mediation:

A voluntary process based on the parties’ consent
The mediator is neutral and does not decide the dispute
The process is confidential
Usually shorter and faster than litigation
Lower costs
Greater flexibility in managing the process
The agreement is reached by consent
The agreement may be given the force of a court judgment
The parties may proceed to litigation at any stage

Questions and Answers

What is important to know before a real estate transaction?

What is the difference between mediation and court proceedings?

Mediation allows the parties to manage the dispute and work toward an agreed solution themselves, rather than placing the final decision in the hands of a court.
What is the difference between mediation and arbitration?

In mediation, a neutral mediator helps the parties reach an agreement but does not decide the dispute. In arbitration, by contrast, the arbitrator hears the parties' positions and issues a binding decision.

Mediation is therefore generally more suitable where the parties are willing to seek a negotiated solution, while arbitration is more appropriate where a binding determination is required.
Does mediation require the parties to reach an agreement?

No. The parties are not required to reach a settlement simply because they participate in mediation. An agreement becomes binding once the parties reach agreed terms and formalize them in a settlement agreement.

Where appropriate, the parties may also ask the court to give the mediation agreement the force of a judgment.
Is everything discussed during mediation confidential?

As a general rule, mediation is conducted confidentially. Statements and information provided during mediation are generally not admissible as evidence in subsequent civil proceedings.

This is one of the key advantages of mediation, as it allows the parties to communicate more openly while exploring possible solutions.
What happens if mediation is unsuccessful?

If the parties do not reach an agreement, they may continue with court proceedings, proceed to arbitration, or choose another dispute-resolution mechanism that is appropriate to the circumstances.

Participating in mediation does not prevent either party from later pursuing the matter in court.
Can a mediation agreement be given the force of a court judgment?

Yes. Where the parties reach a mediation settlement, the court may give the agreement the force of a judgment.

This can be particularly important where the parties want their agreement to have a clear and enforceable legal status beyond the contractual obligations between them.
When is mediation a good option?

Mediation can be appropriate where a dispute already exists but the parties are still willing to communicate, compromise, and explore an agreed solution.

It may be particularly useful where preserving an ongoing relationship, saving time, or handling the dispute discreetly is important.
When is arbitration a good option?

Arbitration may be suitable where the parties want a binding decision but prefer to resolve the dispute in a more flexible and focused framework than ordinary court proceedings.

It is particularly common where the parties have already agreed to an arbitration mechanism or where they want a professional decision-maker to determine the dispute.
Is an arbitration award binding in the same way as a court judgment?

An arbitration award is binding on the parties. Once confirmed by the court, it has the same status as a court judgment, subject to the specific rules governing appeals.

For that reason, it is important to understand the implications of entering arbitration and the limits of the process before proceeding.
Can an arbitration award be set aside?

An application to set aside an arbitration award may be made only on specific grounds set out in the Arbitration Law.

Because the grounds are limited, parties should enter arbitration with a clear understanding of the legal consequences and the risks involved.
Can I consult a lawyer during mediation?

Yes. There is no restriction on obtaining legal advice during mediation.

This can be particularly important where the proposed settlement may affect legal rights, financial interests, or future obligations.
Is mediation also suitable for real estate disputes?

Yes. Mediation may be used in real estate disputes as well as other civil disputes, including disagreements between co-owners, parties to a transaction, or holders of rights in property.

You deserve close, professional, and personal legal support.

In the most expensive and important transaction of your life, I will be there for you.
From the negotiation stage through delivery or receiving the keys, registration in the Land Registry, and far beyond.