Arbitration

Binding Arbitration is a procedure by which parties agree to submit their dispute(s) to a neutral third party, known as an arbitrator. The arbitrator considers arguments and evidence from all sides, then renders a written final and binding decision. The parties may mutually agree upon the rules and procedures. Nonbinding Arbitration is a type of arbitration where the arbitrator makes a determination of the rights of the parties to the dispute, but this determination is not binding upon them, and not enforceable in a court of law. The “award” is in effect an advisory opinion of the arbitrator’s view of the respective merits of the party’s case. Many times the parties agree to this format and utilize it in connection with attempts to reach a negotiated settlement.