With arbitration, each party presents the facts and arguments of their case to an arbitrator, who then weighs and evaluates the information collected, and makes a decision for the party. Arbitration can be binding or non-binding — and the parties agree to the arbitrator choice and the scope of the arbitrator’s binding power prior to the process.
Arbitration is like a trial typically held at an office and not a courtroom: The rules of evidence are not strictly followed, and no official record of the proceeding is created or maintained. As a result, arbitration has a less formal feel than a trial.
Some of the advantages of Arbitration:
- Rather than waiting on what could be months or years to get a trial date with the court, an arbitration case can be scheduled on much shorter notice, as soon as the parties, attorneys and arbitrator can find a date that works for everyone.
- Because the process is typically shorter and less formal than court, the cost of arbitration is often significantly less than court.
- The parties can agree ahead of time on the rules governing the arbitrator’s decisions. The decision can be binding or simply advisory. The decision can cover some, but not all, of the issues that exist between the parties, or it can cover all of the outstanding disputes.