ADR & Mediation Research Guide

Arbitration is "a method of dispute resolution involving one or more neutral third parties who are usually agreed to by the disputing parties and whose decision is binding."  Black's Law Dictionary 119 (9th ed. 2009).

By agreeing to arbitration, the parties, wave their fundamental, constitutional right to a trial by a jury of their peers and unless otherwise agreed, the decision is legally binding and non-appealable (except in limited circumstances). Arbitration can be broadly divided as:

• Binding Arbitration
  • Domestic Arbitration: The Federal Arbitration Act and state laws generally govern the process unless the parties choose an administering authority, in which case, the authority's rules govern the process.
  • International Arbitration: Similar to domestic litigation, international arbitration allows parties from different legal, linguistic and cultural backgrounds to resolve their disputes in a final and binding manner, typically without the formalities of the procedural rules of their own legal systems.
• Non-Binding Arbitration

Consult Black's Legal Dictionary for definitions of any unfamiliar legal terms in this guide.