What is Arbitration

Arbitration is a private, legally binding dispute resolution process where a neutral arbitrator, or panel of arbitrators, makes a final decision on a dispute outside of court. It is often faster and less expensive than traditional litigation, and parties typically have a role in selecting the arbitrator. While arbitration involves presenting evidence and arguments like a trial, it generally has less rigid procedures and can be a final decision-maker for the dispute.

Process

1. Parties present their case to a neutral third party (an arbitrator) instead of a judge or jury.
2. The arbitrator considers the facts and arguments to make a final, binding decision.
3. Decisions are final and can be enforced by a court, with very limited grounds for appeal.

How it works

1. Often, parties agree to arbitration in a contract before a dispute even arises.
2. It can be voluntary or mandatory.
3. Procedures can be similar to a trial, including submitting briefs, introducing documents, and hearing witness testimony.
4. However, arbitrators are not always bound by the same strict rules of procedure or evidence as a court.

Advantages

1. Speed and cost: Generally faster and less expensive than litigation.
2. Flexibility: Parties can select an arbitrator with specific expertise relevant to their dispute.
3. Privacy: It is a private process, unlike public court proceedings.