Arbitration

The difference between arbitration and a lawsuit is primarilyone of formality. For example, in arbitration, the formal rules ofevidence don’t apply. Each side can go on and on with narrativediscussions, drawings and charts, and the arbitrator will take inall of it and make a decision. There are no juries in arbitration.Instead, usually one to three people specially trained in thesubject matter of the arbitration hear the case. Arbitrations areheard much sooner than lawsuits can be scheduled. This can beeither good or bad, depending on which side you’re on.

Unless specified as such in a contract’s arbitration clause,arbitrations are not final and binding. Either party can decidethat they don’t like the outcome. Once an arbitration award is madeand a binding clause is in the contract, a court will make thearbitration award an enforceable judgment.