What is Arbitration?

Arbitration becomes necessary to further resolve a dispute when mediation efforts fail to deliver a settle agreement between parties or as ordered by a judge to follow rules predetermined in an arbitration agreement.  

Arbitration is the most formal type of ADR, although less formal than a traditional trial and are performed by certified arbiters (one or on a panel) who act as ‘judges’ to enforce the rules of any pre-existing arbitration clauses, make decisions about evidence and provide written opinions (binding or non-binding). The settlement is typically binding unless the court finds a violation of the arbitration agreement. 

While arbitration may be conducted with one (sole) arbiter, it is more common for each side to select an arbiter, and the arbiters then select an additional ‘neutral’ arbiter to form an arbitration panel. The dispute is then presented to the arbitration panel which processes all information and evidence and makes final decisions by a majority vote.