A recent article in the Huffington Post highlighted the many benefits of engaging in mediation and arbitration, especially in the entertainment and sports industry.  Mediation and arbitration often referred to as alternative dispute resolution (ADR) are increasingly being used in entertainment law disputes, rather than litigation.  Litigation is too costly to be effective in these cases and ADR helps salvage relationships in the entertainment industry that litigation would otherwise threaten.

Although arbitration can take different forms, it generally involves an arbitrator rendering a final and binding decision at the end of a hearing. Mediation on the other hand involves the parties meeting with a neutral third-party who assists them in negotiating their differences. 

Parties often see the many benefits to engaging in ADR. In arbitration, the rules of evidence are much more relaxed, permitting more evidence to be admitted.  This allows the parties to explore all facets of their argument.  Most often the arbitrator specializes in the particular area of law which is at issue, which many feel leads to a fairer, more nuanced decision compared to litigation.  Further, arbitration provides a level of privacy not found in traditional litigation.  Cases are not heard in open court and transcripts are not made a part of a public record.

Mediation, on the other hand, focuses on interests, rather than the positions of the parties thus creating the possibility of a win-win result.  A judge or jury’s decision could be potentially devastating to one party. Mediation avoids this by allowing parties to fashion their own outcome.  Mediation provides an environment which nurtures the collaborative relationships necessary to the entertainment and sports industry that might otherwise be destroyed in the adversarial litigation context.

In the entertainment industry, parties may have on-going relationships which need to be preserved and which might be harmed in litigation, for example an artist and record label, or an athlete and the league. The reality is arbitration and mediation clauses are a part of many entertainment and sports contracts today. For instance, an arbitrator recently ruled the NFL was not required to remove Minnesota Vikings running back Adrian Peterson from the exempt list. Meanwhile a private arbitrator has just rendered an award against Harvey and Bob Weinstein in a $75 million-plus lawsuit they filed against Time Warner Inc.'s Warner Bros.

Through mediation and arbitration, the likelihood is far greater that an acceptable agreement to both sides can be reached because the parties are encouraged to participate in the resolution process.  Moreover, given the cost, time, and uncertainty of litigation, ADR is an attractive way for parties to resolve their disputes.