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What is non-binding arbitration?

On Behalf of | Apr 26, 2024 | Arbitration

Some disputes that could be handled in court are resolved through alternative dispute resolution methods. One of these is arbitration, which involves presenting each side of the matter to an arbitrator or a panel of arbitrators to issue a decision on the matter. Ethical behavior by the arbitrator is imperative in these cases. Additionally, the decision must be within the scope of what would be considered legally acceptable.

There are two general types of arbitration – binding and non-binding. While binding arbitration is typically enforceable in court if the terms aren’t complied with, non-binding arbitration comes with options after the issuance of the decision.

Why would someone use non-binding arbitration?

Non-binding arbitration is a viable option for situations that require a little extra assistance with the resolution. The arbitrator provides an unbiased solution to the matter. It’s then up to both parties to determine if they feel that’s an acceptable solution. If either party doesn’t agree to the terms, they can appeal the decision and a different resolution method can be used.

In some cases, the court may order non-binding arbitration. This gives both parties the chance to resolve the matter without a trial. Once the arbitrator issues a decision, both parties have to accept it if it will be followed. If one party doesn’t agree, they can request a trial.

Anyone who’s going through arbitration should ensure they have a legal representative who understands their side of the matter so they can protect their rights. The procedures for arbitration are different from a trial, which means they also need to have someone who’s familiar with working with an arbitrator.