When mediation fails after a warranty claim is denied, what is usually the next step?

When mediation fails after a warranty claim is denied, the next logical step is often arbitration. This is because arbitration is a more formal process than mediation and provides a binding resolution to disputes that the parties have been unable to settle through negotiation or mediation.

Arbitration involves an impartial third party who hears both sides of the dispute and makes a decision that is typically final and enforceable in a court of law. This process is preferred in many warranty claims as it avoids the time and expenses associated with lengthy court battles while still providing a definitive outcome.

In contrast, a second round of mediation is usually not pursued as a viable next step when mediation has already failed, as the goal of mediation is to facilitate agreement without the need for more adversarial proceedings. Condemnation relates to government actions regarding property and is not relevant in the context of warranty claims. Litigation, while a possible next step, is generally viewed as a more extreme measure compared to arbitration, especially in contractual disputes where arbitration is often stipulated as the first course of action. Thus, arbitration serves as a strategic and effective mechanism to resolve warranty disputes post-mediation failure.