What is Arbitration and dispute resolution?
Any method of resolving a disagreement outside of court is referred to as Alternative Dispute Resolution or ADR. The most common method of ADR is arbitration. Arbitration, mediation, or other methods of conflict resolution may be used in ADR; it may also be optional or required.
Arbitration is legally binding. It is usually overseen by a private company that keeps a list of available arbitrators and sets the guidelines for how the arbitration will go. These groups can oversee either part of or the entire arbitration. Arbitrators are frequently chosen by parties based on their applicable experience.
The arbitrator, who is typically a retired judge or attorney, issues a judgment at the conclusion of an arbitration session and that decision is final and binding with only very limited scope for court review. This means arbitration is adjudicatory as opposed to advisory. If the parties agree to it, arbitration may be non-binding.
How Are Arbitrations Conducted?
The majority of arbitrations are determined by pre-dispute agreements between the parties, in which they stipulate that any disputes they might have will never be brought before a court. For the most part, the arbitration will be governed by the Federal Arbitration Act and the local state arbitration legislation. The proceedings will be governed by the arbitration rules of the administering authority if the parties select one.
The parties waive their fundamental constitutional right to a trial by a jury of their peers by agreeing to arbitration. After they have gone through the arbitration, there is no chance to have a de novo (second trial), except in extremely limited circumstances, such as in the instance of fraud or collusion on the side of the arbitrator. Otherwise, the decision is final and binding.
The arbitrator is typically a third party whom the parties designate. Following the hearing, the arbitrator reads briefs and documentary evidence, hears testimony, reviews the evidence, and then provides an “award of the arbitrator” outlining their findings regarding liability and damages. The award may then be entered as a judgment after being approved by a court with relevant jurisdiction.