Arbitration is a private process where disputing parties agree that one or more neutral third parties called arbitrators decide how the dispute will resolve.  The arbitrator does so after receiving evidence and hearing arguments, either during an arbitration hearing or through the submission of briefs and affidavits.  Arbitration is different from mediation because the neutral arbitrator has the authority to decide about the dispute.  The arbitration process is similar to a trial in that the parties make opening statements and present evidence to the arbitrator. Compared to traditional trials, arbitration can usually be completed more quickly, less formal and for less cost to the parties. For example, often the parties do not have to follow state or federal rules of evidence and, in some cases, the arbitrator is not required to apply the governing law.  After the hearing, the arbitrator issues an award. Some awards announce the decision and are called a standard award.  While others give reasons and are called a reasoned award. The parties choose the type of award they seek.  The arbitration process may be either binding or non-binding. When arbitration is binding, the decision is final, can be enforced by a court, and can only be appealed on very narrow grounds. When arbitration is non-binding, the arbitrator's award is advisory and can be final only if accepted by the parties.

Lawyers in Arbitration

If you are represented by an attorney, it is a good idea for your attorney to prepare for and attend the Arbitration with you.  Unlike mediation, Arbitration is more formalistic, considerably less so than litigation, but it requires certain knowledge and skills that disputants often do not possess.