MedALOA

   

   MedALOA (Mediation And Last Offer Arbitration) is a special dispute settlement process that
   combines the flexibility of mediation with the control, efficiency and finality of “last
   offer” binding arbitration.  It is extremely effective when correctly applied, typically in
   limited situations or for sophisticated litigants.

   

   Last Offer Arbitration is often used in the resolution of money claims or in the resolution of
   salary disputes. During arbitration, the parties each submit their last offer of settlement to
   the arbitrator. The arbitrator must then choose one offer or the other, and the parties agree
   to be bound by that decision. Thus, the parties set the limits of the arbitrator's award. Last
   Offer Arbitration may be less likely to freeze negotiations between the parties before they
   reach the arbitration phase, since mutuality is aided by the fact that the neutral will decide
   between one party's offer or the other. Therefore, it is in the parties' best interest to be
   as realistic as possible in submitting their offers.

   

   MEDALOA combines mediation with Last Offer Arbitration. The parties agree to proceed to
   mediation. They also agree that, if mediation produces no settlement, they will then submit
   their last offer (if any) made during mediation to the neutral, who chooses one or the other
   and renders a decision. Since the neutral is limited to the last offer of the parties, once
   again the parties have some degree of control over the arbitration process. Thus, they are
   less likely to complain about the outcome. As with Last Offer Arbitration, the parties are
   encouraged to make a realistic settlement offer, anticipating that the neutral will choose
   between one of the offers. Therefore, the openness of mediation between the parties is not
   thwarted by the fact that the parties have agreed to submit the matter to arbitration should
   they fail to reach a settlement.