Susan is part owner of one of the best restaurants in a medium-sized city. This restaurant is operated as a partnership. In October 2003, the local newspaper published a story about Bill, who is Susan's business partner in the restaurant.

In this article it is stated that Bill's net worth is several million dollars. About ten days later Susan receives a summons notifying her that the restaurant is named as the defendant in a negligence case. The plaintiff in the case alleged that she slipped and fell to the floor inside the restaurant near the rear door late one night in December 2001. According to the plaintiff, she slipped on water from snow that had been tracked in and had melted.

The plaintiff also alleged that there were no employees or other customers in sight of the back door when the plaintiff slipped and fell, and that she was leaving the restaurant when the accident occurred. The plaintiff did not notify anyone at the restaurant when the accident occurred or at anytime thereafter prior to the filing of the lawsuit. Although the majority of diners at this restaurant makes reservations in advance and pays with a credit card, the restaurant has no records of reservations or payment by the plaintiff.The plaintiff claims to have paid with cash. Susan and Bill have heard about alternative dispute resolution and would like to know more about how it works and about its advantages and disadvantages.

If you were the attorney for Susan and Bill, what would you tell Susan and Bill in response to the following questions? What is mediation and what is arbitration, and how do they work? Compare mediation, arbitration and litigation.